RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/LAO/4/Rev.1
24 May 2011 
 (11-2587) 
Working Party on the 
Accession of the Lao PDR  
 
 
 
ACCESSION OF THE LAO PDR 
 
Elements of a Draft Working Party Report  
 
Revision   WT/ACC/SPEC/LAO/4/Rev.1 
 Page i 
 
 
  TABLE OF CONTENTS 
 
I. INTRODUCTION ................................................................................................................... .1 
DOCUMENTATION PROVIDED ......................................................................................................1  
INTRODUCTORY STATEMENTS....................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................3  
- Monetary and Fiscal Policy..................................................................................................... .3 
- Foreign Exchange and Payments ............................................................................................5  
- Investment Regime.............................................................................................................. ......7  
- State Ownership and Privatization .......................................................................................11  
- Pricing Policies ............................................................................................................... .........12  
- Competition Policy............................................................................................................. .....14  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................15  
- Powers of Executive, Legislative and Judicial Branches of Government ..........................15  
- Authority of Sub-Central Governments ...............................................................................18  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................19  
- Trading Rights ................................................................................................................. .......19  
A. IMPORT REGULATIONS....................................................................................................22  
- Ordinary cust oms duties ........................................................................................................ 22 
- Other duties and charges....................................................................................................... .22 
- Tariff rate quotas, tariff exemptions.....................................................................................22  
- Fees and charges for services rendered.................................................................................23  
- Application of internal taxes to imports ...............................................................................24  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............25  
- Customs valuation.............................................................................................................. .....28  
- Rules of origin ................................................................................................................ .........30  
- Other customs formalities ...................................................................................................... 31 
- Pre-shipment inspection ........................................................................................................ .31 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................32  
B. EXPORT REGULATIONS ...................................................................................................32  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........32  
- Export rest rictions ............................................................................................................ ......33  
- Export subsidies ............................................................................................................... .......34  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................35  
- Industrial policy, including subsidies....................................................................................35  WT/ACC/SPEC/LAO/4/Rev.1 
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  - Technical barriers to trade, standards and certification.....................................................37  
- Sanitary and phytosanitary measures...................................................................................43  
- Trade-related investment measures ......................................................................................53  
- State-trading entities......................................................................................................... ......53  
- Free zones, special economic areas........................................................................................54  
- Government procurement......................................................................................................56  
- Transit........................................................................................................................ ..............57  
- Agricultural policies.......................................................................................................... ......57  
(a) Imports........................................................................................................................ .............57  
(b) Exports........................................................................................................................ .............58  
(c) Internal policies.............................................................................................................. .........58  
- Trade in ci vil aircraft........................................................................................................ ......59  
- Textiles regime ................................................................................................................ ........59  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................59  
- GENERAL........................................................................................................................ .......59  
- Industrial property protection...............................................................................................59  
- Responsible agencies for policy formulation and implementation .....................................60  
- Participation in international intellectual property agreements ........................................61  
- Application of national and MFN treatment to foreign nationals......................................62  
- Fees and taxes................................................................................................................. .........62  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS ...........................................................................62  
- Copyright and related rights..................................................................................................6 2 
- Trademarks, including  service marks...................................................................................65  
- Geographical indications, including appellations of origin.................................................66  
- Industrial designs............................................................................................................. .......68  
- Patents........................................................................................................................ ..............68  
- Plant variety protection....................................................................................................... ...70  
- Layout designs of integrated circuits ....................................................................................70  
- Requirements on undisclosed information, including trade secrets and test data............70  
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY 
RIGHTS......................................................................................................................... ..........70  
- ENFORCEMENT...................................................................................................................7 1 
- Civil judicial procedures and remedies.................................................................................71  
- Provisional measures ........................................................................................................... ...72  
- Administrative procedures and remedies.............................................................................72   WT/ACC/SPEC/LAO/4/Rev.1 
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  - Special border measures........................................................................................................ .73 
- Criminal procedures............................................................................................................ ...73  
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................74  
VII.  TRANSPARENCY .................................................................................................................76  
- Publication of information on trade......................................................................................76  
- Notifications.................................................................................................................. ...........77  
VIII.  TRADE AGREEMENTS .......................................................................................................77  
CONCLUSIONS .................................................................................................................... ..............77  
ANNEX .......................................................................................................................... .......................78   WT/ACC/SPEC/LAO/4/Rev.1 
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  I. INTRODUCTION 
1. The Government of the Lao People's Democra tic Republic (Lao PDR) applied for accession 
to the World Trade Organization (WTO) in July 1997.  At its meeting on 19 February 1998, the 
General Council established a Working Party to ex amine the application of the Government of 
Lao PDR to accede to the World Trade Organizati on under Article XII of the Marrakesh Agreement 
establishing the WTO.  The terms of reference and the membership of the Working Party are 
reproduced in document WT/ACC/LAO/2/Rev.[9].   
2. The Working Party met on 28 October 2004 under the Chairmanship of H.E. Mr. T. Groser 
(New Zealand); on 30 November 2006, 15 November 2007, and 4 July 2008 under the Chairmanship of H.E. Mr. B. Gosper (Australia) and on 14 July 2009, 24 September 2010 and ...................under the 
Chairmanship of Mr. Zhang Xiangchen (China). 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Lao PDR (WT/ACC/LAO/ 3), the questions submitted by Members on the 
foreign trade regime of Lao PDR, together with the replies thereto, and other information provided by 
the authorities of Lao PDR (WT/ACC/LAO/4, WT/ACC/LAO/5, WT/ACC/LAO/6 and Revisions 1 
and 2, WT/ACC/LAO/7, WT/ACC/LAO/8, WT/ACC/ LAO/9 and Revisions 1, 2, 3, 4 and 5, 
WT/ACC/LAO/11, WT/ACC/LAO/12 and Revisions 1,  2 and 3, WT/ACC/LAO/13 and Revisions 1, 
2, 3 and 4, WT/ACC/LAO/14 and Revisions 1, 2, 3 and 4, WT/ACC/LAO/15 and Revisions 1, 2, 3 
and 4, WT/ACC/LAO/16, WT/ACC/LAO/17, WT/ACC/LAO/18, WT/ACC/LAO/19, 
WT/ACC/LAO/20, [...]), including the legislative te xts and other documentation listed in Annex I. 
INTRODUCTORY STATEMENTS 
4. The representative of Lao PDR said that his G overnment had implemented a comprehensive 
reform programme since the mid 1980s to transf orm the economy from central planning towards a 
market-oriented system.  Lao PDR had joined th e Asia Pacific Trade Agreement in 1975 and the 
Association of South East Asia n Nations (ASEAN) in 1997, with the aim to establish an ASEAN 
Economic Community by 2015, and was negotiating regi onal trade agreements with dialogue partners 
of the ASEAN.  Lao PDR was thereby gradually in tegrating into a regional forum consistent with 
WTO rules and procedures.  However, the institutio nal base for a market economy remained weak in 
Lao PDR, principally due to landlockedness and underdeveloped infrastructure.  Notwithstanding 
these challenges, his Government remained committed to economic integration as the foundation for WT/ACC/SPEC/LAO/4/Rev.1 
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  long-term socio-economic development.  In this  context, WTO Membersh ip would complement 
pro-poor domestic economic and trade reforms in  response to increasing competition in the global 
economy.   
5. Lao PDR was pursuing an open trade regime consis tently and was keen to ensure widespread 
confidence in it.  The trade policy regime was being reformed to enhance transparency and secure an 
enabling trade environment.  Over a period of ten years, his Government had been transforming the 
legal regime from a framework based on decrees to a system essentially based on laws passed by the 
National Assembly.  However, as a land-locked LD C, Lao PDR was vulnerable and continued to face 
structural challenges.  He therefore called upon Memb ers to be sympathetic to his country's needs and 
flexible with respect to the terms and conditio ns whereby Lao PDR would be implementing its 
accession obligations.  His Government would seek to benefit from the special and differential 
treatment provisions and the flexibilities granted to LDCs, including the transitional periods and 
technical assistance foreseen in the WTO Agreements, and the General Council's Decision on 
Guidelines for LDCs Accession (document WT/L /508).  Customs valuation, sanitary and 
phytosanitary measures, technical barriers to trad e, trade-related investment measures, industrial 
subsidies, and intellectual property rights were ar eas in which his Government required particular 
flexibility and assistance.   
6. Members welcomed Lao PDR's application to join the WTO and pledged to work 
constructively to advance and conclude Lao PDR's accession on appropriate terms.  
While appreciating the domestic reforms already u ndertaken, some Members noted that further work 
was needed to achieve compliance with WTO rules and disciplines.  Several Members indicated that 
they would continue to extend technical assistance  to facilitate Lao PDR's accession to the WTO.  
Lao PDR was a beneficiary of the Enhanced Integrat ed Framework.  The country's status as an LDC 
was recognized, and in keeping with WTO Ministeria l Declarations, Decisions and the Guidelines for 
LDCs Accession, this would be a relevant factor in establishing the terms of accession for Lao PDR.   
7. The Working Party reviewed the economic polici es and foreign trade regime of Lao PDR and 
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by Members of the Working Party on the various aspects of Lao PDR's foreign trade regime, and on the terms and 
conditions of Lao PDR 's accession to the WTO, ar e summarized below in paragraphs 8 to [..].    WT/ACC/SPEC/LAO/4/Rev.1 
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  II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 8. The representative of Lao PDR said that contro lling inflation and mainta ining exchange rate 
stability were the main aims of monetary policy.   The central bank - the Bank of Lao PDR (BOL) - 
was in charge of monetary policy and supervised the banking sector pursuant to Law No. 05/95 "On the Bank of Lao PDR" of 14 October 1995 w ith amendments of 14 October 1999.  Money supply 
expansion was calibrated to meet in flation and growth targets.  Alt hough the Asian financial crisis had 
pushed annual inflation to 129 per cent in 1999, th e economy had stabilized once again, and inflation 
had returned to the single-digit level of the 1990s.  The recent global financial crisis had little direct 
impact on the economy of Lao PDR.  The rate of  inflation had amounted to 7.6 per cent in 2008 due 
to price hikes on fuel and food, before dropping to 0.03 per cent in 2009.  It rose again to 5.9 per cent 
in 2010.   
9. The BOL regulated the monetary system through indirect monetary policy instruments such 
as mandatory reserve requirements, the issuance of bonds, overdraft facilitie s for commercial bank 
borrowing, and discount facilities for loans secured against treasury bills and BOL bonds; and, when 
necessary, with direct monetary policy interventio ns, including credit/deposit ratios, direct sale of 
foreign exchange to the market, and moral suasion to limit the credit expansion or to smooth transitory fluctuations in the exchange rate.  Th e BOL had so far been successful in implementing its 
monetary policy framework with a view to mainta ining low inflation and a stable exchange rate 
within a managed float exchange rate system.  In 2009, the BOL had reduced the short-term interest 
rate from 7 to 4 per cent; maintained the mandato ry reserve requirement ratio at 5 per cent for 
deposits in local currency, and at 10 per cent fo r foreign currency deposits; continued to facilitate 
open-market-operations; and issued BOL bonds to mobilize funds for infrastructure development.  
10. The banking sector in Lao PDR comprised the BOL, four State-owned commercial banks, 
two joint venture commercial banks, eight privatel y-owned banks and 11 bran ches of foreign banks.  
Banking activities permitted in Lao PDR were sti pulated in Law No. 03/NA "On Commercial Banks" 
of 26 December 2006, replacing Decree Law No . 01/NA of 11 March 1997.  Implementing Decree 
No. 275/PM to the new law was adopted on 25 Sept ember 2009.  A financial sector strategy was 
adopted by Prime Minister's Decree No. 273/PM , dated 22 September 2009 and Decision of the 
Governor No. 276/BOL, dated 20 April 2010.  WT/ACC/SPEC/LAO/4/Rev.1 
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  11. Since 1988, public finances in Lao PDR had b een overhauled with emphasis on improving the 
tax system and controlling government expenditures for fiscal balance and sustainability.  However, 
with increased outlays for health, education and basi c infrastructure in the 1990s, public expenditure 
had outpaced government revenue.  Over the peri od 1994 to 1998, expenditure had accounted for 
21 to 27 per cent of GDP, and revenue between 11 an d 13 per cent of GDP.  The fiscal deficit in 1998 
had amounted to 12.8 per cent of GDP.  Helped by tax changes, revenue had been higher than 
expected since the fiscal year 2005/06, while expenditu res had been in line with established targets.  
Over the period 2004/05 to 2008/09, the revenue to  GDP ratio had ranged from 12.1 to 17.4 per cent, 
while the expenditure ratio had been in the 19 to  20.7 per cent range.  Net domestic financing had 
continued to decline.   
12. Tax Law No. 04/95/NA of 14 October 1995 (with  amendments of 28 September 1998) had 
brought about improvements in the tax system by reducing the profit tax rates, introducing ad valorem  
customs duties, enlarging the income tax base, and enha ncing the role of excise taxes.  The tax regime 
had been transformed further with the promulgation of a new Tax Law No. 04/NA of 19 February 2005.  Lao PDR was ai ming to broaden its direct and indirect tax base, improve tax 
efficiency, increase revenues from domestic taxes,  and reduce the dependence on border duties.  
A break-down of government revenue from 2004/ 05 to 2008/09 is presented in Table 1.  
Table 1:  Government Revenue
 
Government revenue (KN billion) 
Fiscal year 2004/05 2005/06 2006/07 2007/08  2008/09 
Tax revenue 2,803.1 3,641. 1 4,583.3 5,627.1 6,207.6 
Profit tax 307.2 458.9 955.4 1,321.6 1,303.0 
Income tax 214.9 234.2 255.1 333.1 424.7 
Land tax 27.6 30.1 44.8 78.0 63.9 
Business licences 2. 2 6.1 1.5 2.5 3.7 
Minimum tax 12.8 22.2 21.2 21.5 29.2 
Turnover tax 673.5 887.1 1,043.3 1,228.5 1,401.0  
Excise tax 522.8 800.3 987.3 1,190.0 1,432.5  
Tax on foreign trade 472.0 567.6 573.0 696.5 774.0 
- Import duties 428.6 514.5 548.1 674.2 726.2 
- Export duties 43.4 53.1 24.9 22.3 48.8 
Registration fees 17. 6 24.7 49.0 13.9 26.7 
Other fees 211.2 162.6 156.2 185.6 - 
Natural resource taxes 94.8 217.6 283.8 316.5 219.5 
Timber royalties 189.4 172.5 166.3 105.2 78.1 
Hydro royalties 57.1 57.2 46.4 56.4 77.7 
Non-tax revenue 584.3 624.9 604.4 812.0 822.8 
Leasing income 44.2 36.1 32.7 27.2 41.1 
Concessions 8.1 7.4 8.1 17.9 30.7 
Fines 15.3 23.8 30.3 31.4 25.3 
Administrative fees 69.2 89.2 83.1 100.9 76.0 
Dividends 177.8 174.8 153.4 293.3 338.4 
Interest 47.9 65.0 65.6 105.3 94.7 
Over flight charges 221.8 228.6 231.2 235.4 203.4 
Total Revenue 3,387.4 4, 266.0 5,187.7 6,439.1 7,030.4  WT/ACC/SPEC/LAO/4/Rev.1 
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  - Foreign Exchange and Payments 
13. Some Members noted that the national curre ncy of Lao PDR - the kip (KN) - was not 
convertible, and that the IMF had c onducted an analysis to determine wh at restrictions remained that 
prevented Lao PDR from accepting the obligati ons of Article VIII of the IMF's Articles 
of Agreement, including the elimination of forei gn exchange restrictions on the making of payments 
and transfers for current international transactions .  Lao PDR was requested to describe its existing 
foreign exchange regime, indicate how work w as proceeding to enable Lao PDR to accept the 
obligations of IMF Article VIII, and provide a timetabl e for the elimination of restrictions such as the 
repatriation, surrender, and ta x certificate requirements.   
14. The representative of Lao PDR replied that the legal framework on foreign exchange 
management implemented by the BOL had b een founded on Presidential Decree Law No. 01/P 
"On Management of Foreign Exch ange and Precious Metals" of 17 March 2008 and its implementing 
regulations (Instruction No. 1/BOL "On the Implem entation of Decree Law on the Management of 
Foreign Currency and Precious Metals" of 2 Apri l 2010).  Decree Law No. 01/P (2008) had amended 
and replaced the previous Decree Law No. 1/OP (2002) to reflect the IMF's recommendation on 
Article 13 (about the exchange rate being determined by the market) and Article 27 (the need for tax 
certificates for remitting profits abroad).  Follo wing the review and the amendment of certain 
provisions in Lao PDR's legal framework, the Go vernment of Lao PDR had formally accepted the 
obligations of Article VIII, Sections 2, 3 and 4 of the IMF's Articles of Agreement on 28 May 2010.  
Notification No. 57/BOL had been adopted on 6 March 2008.  The Notification facilitated the 
acquisition of foreign exchange by the public.  Purchases not ex ceeding KN 20 million per person per 
day required the presentation of an identity card only. 
15. Instruction No. 1/BOL of 2 April 2010 repl aced Instruction No. 2/BOL (2003) and the 
Additional Instruction No. 1/BOL (2004), which rela ted to the obligation that foreign exchange 
earnings be repatriated within 120 days, and that resident exporters , except those who had been given 
specific permission (i.e. income used to repay ex ternal loans approved by the BOL, payment for 
letters of credit approved by the BOL,  or conditions stipulated in a c ontract between a foreign investor 
and the Government of Lao PDR), were required to remit their proceeds through any commercial 
bank located in Lao PDR within a stipulated time li mit.  He further added that Regulation No. 1/BOL 
(2000) had been replaced by Notification No. 499/BOL of 7 July 2009, whereby foreign exchange surrender by wood exporters was abolished.  WT/ACC/SPEC/LAO/4/Rev.1 
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  16. The representative of Lao PDR said that forei gn exchange transactions were handled by 
commercial banks, foreign exchange bureaus or ot her business entities authorized by the BOL.  
Residents could keep all their foreign exchange proceeds in foreign exchange accounts; no retention 
ratio was specified.  Residents in need of local  currency for domestic payments could sell foreign 
currency to the commercial banks or authorized fore ign exchange bureaus.  Pursuant to Notification 
No. 53/BOL, foreign exchange bureaus only required a copy of an identity card to buy or sell foreign 
exchange to the general public.  In accordance with  Notification No. 57/BOL, foreign exchange could 
be purchased for (i) payment of imported goods; (ii) payment of fees for import or export related 
services, including transportation, insurance and ware house charges; (iii) settlement of foreign debt 
approved by the relevant authorities; (iv) transfer or repatriation of profit, interest and capital from 
foreign investments made pursuant to Lao PDR's in vestment legislation; (v) investment in capital 
assets abroad with government approval; (vi) the ex penses of Lao PDR's embassies, representatives or 
other residents authorized by his Government  to operate abroad; (vii) overseas travel 
(official business, commercial purposes, medical treatment, studies, tourism or visits) within limits established by the BOL; (viii) expenses of students and academics duly authorized by the Ministry of 
Education, and within limits established by the BOL;  and (ix) emigrating residents, within limits set 
by the BOL, to cover travel expenses and, as aut horized, to export their capital.  No quotas or prior 
approval requirements existed for the purchase of fo reign exchange through banks by residents or 
non-residents.  Asked about "additional administrativ e requirements" applicable to foreign currency 
transactions above US$10, 000, he said that these requirements referred to withdrawals of cash from 
personal bank accounts in excess of the equivalent of  US$10,000 per day.  In such cases, the bank was 
obliged to conduct due diligence or a "know-your-customer" procedure.  
17. In the absence of full convertibility, the Ba nk of Lao PDR used exchange rates from 
international and domestic (official and parallel) ma rkets to calculate a weighted average exchange 
rate between the Lao kip and the US dollar at the end of each trading day.  This rate became the 
reference rate for the following day, and served as the basis for the BOL (Operations Department) and 
the commercial banks to determin e the buying and selling rates vis-à-vis their customers, e.g. the 
Government, international organizati ons, and the general public.  In the first four months of 2009, the 
average exchange rate had amounted to KN 8,564 per US$1.  WT/ACC/SPEC/LAO/4/Rev.1 
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  18. As for Lao PDR's balance-of-payments situati on, he said that Lao PDR's merchandise trade 
balance was usually in deficit, but the overall bala nce had been in surplus since 2002.  Gross foreign 
reserves had been at levels providing 5.4 months  of import cover in 2009. The external debt to 
GDP ratio had declined from 71.3 per cent in 2002 to  48.5 per cent in 2008.  The debt-service ratio 
had fallen over the same period from 8.6 per cent in 2002 to 4.6 per cent in 2008.  He informed 
Members that the overall balance-of-payment  for 2010 recorded a surplus of US$97.4 million 
compared with the US$3.72 million deficit in 2009. 
- Investment Regime 
19. The representative of Lao PDR said that La w No. 02/NA "On Investment Promotion" of 
8 July 2009 regulated investments and investors' ri ghts and obligations in Lao PDR.  The new Law 
had unified and replaced Law No. 10/NA "On the Promotion of Domestic Investment" 
(that previously governed domestic investments) and Law No. 11/NA "On the Promotion of Foreign 
Investment" of 22 October 2004 (that previously gov erned foreign investments).  The implementing 
regulations - Decree Nos. 300/PM and 301/PM of 12  October 2005 – had been abrogated.  He added 
that Decree No. 119/PM on Implementation of  Investment Promotion Law was adopted on 
20 April 2011. 
20. In accordance with  Law No. 02/NA "On Investment Promotion", investment could be wholly 
domestic or foreign owned; a joint venture be tween domestic and foreign investors; or a 
joint-business investment contract.  The Law furthe r distinguished between investment in general 
businesses; concession businesses; and in border or special economic zones.  The list of concession 
businesses had been elaborated in the decree implemen ting the Investment Promotion Law.  Article 4 
of Law No. 02/NA provided that the Government s hould promote and facilitate investments in all 
sectors, businesses and areas across Lao PDR.   Exceptions were with regard to threats to national security; the environment; public health; and natio nal culture, as reflected in Decree No. 68/PM 
"On Controlled Business" (Negative List) of 28 Ap ril 2008.  The Negative List was being reviewed 
and amended (Table 2). 
21. Investment approval was not automatic.  General business investments required an 
application to a one-stop-service at the Enterprise Registry Office under the Ministry of Industry and 
Commerce or the Provincial Industry and Commer ce Office.  Concession business investments 
required an investment application to a one-stop-servi ce at the Ministry of Planning and Investment or 
the Provincial Planning and Investment Office.  I nvestors in border or special economic zones were 
required to submit an application to a one-stop-ser vice within the zone.  The timeframe for granting WT/ACC/SPEC/LAO/4/Rev.1 
Page 8  
 
  licenses was identical for domestic and foreign investments.  Data on foreign investment projects 
approved since 2004 is presented in Table 3. 
Table 3:  Approved Foreign Investment Projects (2004 to 2010) 
 
Years 2004 2005 2006 2007 2008 2009 2010 
Number of projects 161 143 171 191 152 208 207 
Value (US$million) 533.1 1,245.3 2,699.7 1,136.9 1,215.5 4,312.9 1,402.2 
 
22. Investment projects were subject to a re gistration fee established in accordance with 
Presidential Decree No. 03/PO "On Fees and Service Charges" of 19 November 2008 (Table 4).  In the past, the Ministry of Finance had also ch arged a fee for registration as a taxpayer equal to 
0.1 per cent of the value of the investment.  Th is fee had been abolished through Prime Minister 
Instruction No. 04/PM "On Streamlining Investme nt Project Approval Procedure and Investment 
Promotion" of 3 March 2005.  In addition to the registration fee, the Ministry of Planning and 
Investment collected a fee per investment app lication (KN 50,000 per form), for the issue of 
investment licences (KN 70,000 per form), and a service fee for the evaluation of investment 
proposals (KN 500,000 per report).   
Table 4:  Registration Fees for Foreign and Domestic Enterprises
 
No. Enterprise's register ed capital Registration fee 
 
1. 2. 
3. 
4. 5. 
6. 
7. 8. 
9. 
10.  
Less than 1,000,000 kip From 1,000,001 to 10,000,000 kip 
From 10,000,001 to 20,000,000 kip 
From 20,000,001 to 50,000,000 kip From 50,000,001 to 100,000,000 kip 
From 100,000,001 to 400,000,000 kip 
From 400,000,001 to 1,000,000,000 kip From 1,000,000,001 to 10,000,000,000 kip 
From 10,000,000,001 to 20,000,000,000 kip 
Above 20,000,000,001 kip  
Nil 
20,000  kip 
50,000  kip 
100,000  kip 300,000  kip 
500,000  kip 
1,000,000  kip 2,000,000  kip 
3,000,000  kip 
5,000,000  kip 
 
23. Asked whether foreign enterprises registered in  Lao PDR were allowed to establish their own 
business chambers or join the Lao National Ch amber of Commerce and Industry (LNCCI), the 
representative of Lao PDR said that any lawfully re gistered enterprise, domestic or foreign-owned, 
could apply for membership to the LNCCI.  The Statutes of the LNCCI did not provide for the creation of separate chambers for foreign-owned enterprises.   
24. As for investment incentives, the representa tive of Lao PDR said that, being an LDC, 
Lao PDR did not have the resources to provide any fi nancial support or credit.  However, in terms of 
revenue foregone, Law No. 10/NA and implementing D ecree No. 300/PM stipulated incentives in the 
form of profit tax exemptions up to seven years,  reduced profit tax rates, exemption from export  WT/ACC/SPEC/LAO/4/Rev.1 
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  duties, and import duty exemptions on raw materials, machinery and equipment for 
domestically-funded export-oriented projects or  investment promoting local content.  
Foreign investment was also eligible for the same  tax and duty exemptions or reductions, according to 
Article 18 of Law No. 11/NA and Decree No. 301/PM , Article 34 and Annex 2.  The incentives 
provided under Law Nos. 10/NA and 11/NA and its implementing decrees could be carried forward until the end of their exemption period.  The prom oted sectors were agriculture, industry, handcrafts 
and services based on Government priorities for poverty reduction, employment, etc.  
The Government had also designated zones, na mely Zone 1 with insufficient socio-economic 
infrastructure to facilitate investments, e.g. mount ainous remote regions; Zone  2 with socio-economic 
infrastructure to partially facilitate investments;  and Zone 3 with infrastructure favourable for 
investments.  To qualify for these investment incenti ves in promoted sectors or regions (i.e. Zones 1, 
2 or 3), companies were required to fulfil a minimum of three among six stipulated conditions, 
namely (i) hiring at least 90 per cent of the la bour force locally; (ii) using model technology; 
(iii) preserving the environment in accordance w ith the Law "On Environmental Protection"; 
(iv) a promoted activity complementing other domes tic production; (v) using more than 50 per cent of 
local raw materials; and (vi) exporting 80 per cent or more of the total output.  Under the local content 
requirement, import duty remission or exemption was only granted for products or materials not 
available domestically.  In response to a specific question, he added that all forms of foreign 
investment qualified for the incen tives, except for the production of construction materials - if the 
foreign share of the investment exceeded 70 per cen t, or the registered cap ital of the enterprise was 
less than US$1 million.   
25. Some Members urged Lao PDR to eliminate WT O incompatible investment measures upon 
accession.  The export performance and local conten t requirements were noted, as well as provisions 
in Law No. 11/NA requiring foreign-invested compani es to hire at least 90 per cent of the work force 
locally (Article 12.5) and obliging them to train,  upgrade professional skills, and transfer technology 
to the local employees (Article 13).  While recognizing the importance of technology transfer, some Members did not consider mandatory provisions on technology transfer helpful for the investment 
climate; the 90 per cent local workforce requireme nt was discriminatory as well as counterproductive; 
and, incentives linked to minimum 50 per cent lo cal raw material were incompatible with 
the Agreement on Trade-Related I nvestment Measures and Article 27 of the Agreement on Subsidies 
and Countervailing Measures.  In reply, the representative of Lao PDR said that the purpose of the local workforce requirement was to ensure that foreign direct investment created job opportunities for 
the population.  According to his understanding,  Annex 1A of the WTO Agreement contained no 
obligations related to granting access to Lao PDR' s labour market.  Similarly, the training and 
technology transfer provisions had been introduced to  allow the benefits of FDI to be shared more WT/ACC/SPEC/LAO/4/Rev.1 
Page 10  
 
  equitably.  The requirements pertaining to local wo rkforce, training and technology transfer were not 
TRIMs measures in his opinion.  Article 25 of the Labour Law No. 06/NA of 27 December 2006 
allowed foreign-invested companies to hire up to 10 per cent unskilled foreign labour, and 20 per cent 
skilled labour.  Permission to engage more forei gn labour could be sought from the Prime Minister's 
Office.  As for export performance and local cont ent requirements, his Government would seek to 
avail of the flexibilities provided for in Article 27 of the Agreement on Subsidies and Countervailing 
Measures and the transitional arrangements in respect  of the TRIMs Agreement available to LDCs in 
the Ministerial Declaration of the Sixth WTO Ministerial Conference (paragraphs 35 to 38 and Annex F).  He added that the local content requi rements in Investment Laws Nos. 10/NA and 11/NA 
and their implementing decrees had been eliminated in the new Investment Promotion Law No. 02/NA. 
26. With the promulgation of Law No. 02/NA, inv estors could, upon written request, receive the 
incentives available under the new inv estment regime.  The Law stipul ated incentives in the form of 
profit tax, import and export duty exemptions.  To  encourage investments in promoted sectors or 
regions, profit tax exemptions  were granted for four to ten years in Zone 1; two to six years in Zone 2; 
and one to four years in Zone 3.  Special in centives in the form of rental or land concessions 
(from three to 15 years) were extended to investme nts in hospitals, kindergartens, schools, vocational 
schools, colleges, universities, research centres a nd public utilities.  Investments in these activities 
were also eligible for an additional five year pr ofit tax exemption.  Import duty exemptions were 
granted for the importation of raw materials, vehicles and equipment used as production inputs 
(Article 52 of Law No. 02/NA).  None of the inve stment incentives extended, pursuant to the Law 
No. 02/NA "On Investment Promotion", were conti ngent upon local content or export performance 
requirements. 
27. In response to a question concerning the investor's obligation to provide compensation for 
impacts caused by their business operation, the representative of Lao PDR clarified that this 
obligation, as provided for in Article 69.5 of Law No. 02/NA "On Investment Promotion", was a general obligation deriving from Article 83 of  the Contract and Tort Law No. 01/NA of 
8 December 2008.   According to this Article, a domestic or foreign investor should be liable for 
damages caused by his act.  The affected party had to file a complaint.  Compensation provided for 
under Article 69.5 of Law No. 02/NA "On Investment Promotion" was non-automatic and subject to a 
court proceeding, in accordance with th e Civil Procedure Law of Lao PDR.  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 11 
 
 
  28. A Member requested Lao PDR to clarify to wh at extent the Lao PDR Registration Authority 
was authorized to suspend or revoke the investme nt, on the basis of environment or socio-economic 
conditions (Article 74 of Law No. 02/ NA "On Investment Promotion").  In reply, the representative of 
Lao PDR said that the authority would only suspend an investment, if the investment operation had 
violated applicable laws and regulations of Lao PD R.  This would include environmental obligations, 
as provided for under Article 70 of Law No. 02/NA.  In accordance with Article 40 of Decree 
No. 112/PM "On Environment Impact Assessment " of 16 February 2010, the Authority could 
determine severe negative impacts of  an investment on the basis of the following factors: (i) degree of 
severity of the environmental and social impacts; (ii) severity of pollution caused by the violation; 
(iii) existence of preventive measure s for foreseeable environmental and social impact; (iv) record of 
violations committed by the project developer; a nd; (v) record of violations committed by the 
investment project.  The enterprise would be disso lved in accordance with the Enterprise Law if no 
solution could be found within the timeframe of su spension, which was determined by the Authority. 
- State Ownership and Privatization 
29. The representative of Lao PDR said that the limited period of central planning in Lao PDR 
had mitigated the transition to a market economy.  The role of the State had been scaled down with 
the number of State-owned enterprises dropping from 800 in 1990 to 37 enterprises in 2002 (Table 5).  
Although precise estimates were not available, th e 37 State-owned enterprises were considered to 
employ less than 15,000 people and accounted for approximately 4 per cent of Lao PDR's GDP in 
2002. 
30. Most State-owned enterprises had been privati zed in the 1990s, and the economic significance 
of the State-owned sector was now, in his opinion, similar to that in many market economies.  Privatization had occurred in services sectors such as telecommunications, transportation, insurance, 
real estate and tourism.  The preferred method of pr ivatization was a joint venture model in which the 
State retained 51 per cent ownership initially, and then reduced its share at subsequent stages. 
31. Asked whether retaining majority State ownership might restrain the privatized enterprises in 
their efforts to improve efficiency, and whether fore ign investors would be able to take control as the 
State was reducing its share, the representative of Lao PDR said that the 37 enterprises would remain 
majority State-owned until his Government would consider it feasible to reduce its share.  
Foreign ownership of such stakes could be expect ed, and the granting of control over some of the 
privatized enterprises would be considered. WT/ACC/SPEC/LAO/4/Rev.1 
Page 12  
 
  32. He stated that Lao PDR at present had no plans to privatize the remaining 37 State-owned 
enterprises, which were considered important for national security, defence, and economic and social 
development.  He noted that a restructuring pr ogramme had been initiated for certain enterprises, 
i.e. Electricité du Laos; Lao Airlines; Lao Nationa l Tourism; the State-owned commercial banks; and 
in the supply of water (decentralization of the Vien tiane Municipality Authorit y).  No timetable had 
been set for the restructuring of these enterprises.  Enterprises which were profitable, considered well 
managed, and in need of capital to expand operations  would be prime candidates to be listed in the 
securities market at a future date .  However, the establishment of a securities market in Lao PDR was 
still under study.  Privatization of  the State-owned commercial banks was considered premature as the 
banks continued to hold a large portion of non-performing loans.   
- Pricing Policies 
33. The representative of Lao PDR said that pri ces for most goods and services were set by 
market forces.  Prime Minister's  Decree No. 207/PM of 11 October 2001 authorized the Ministry of 
Industry and Commerce to monitor prices or institute  price controls.  Based on the Prime Minister's 
Decree, the Ministry had issued Instruction No. 0334/MOC/ITD of 22 March 2002, making some 
30 products/product groups subject to price controls or surveillance (Tables 6(a) and 6(b)).  
Instruction No. 0334/MOC/ITD was being revised to  reduce the product coverage of these measures.  
Lao PDR was in the process of adopting the list of essential utilities (services) subject to price administration, which had been included in the revised Legislative Action Plan 
(WT/ACC/LAO/9/Rev.5).   
34. Prime Minister's Decree No. 207/PM had subsequently been replaced by Prime Minister's 
Decree No. 474/PMO "On Prices of Goods and Services" of 18 November 2010 (see document WT/ACC/LAO/20/Add.1).  This new Decree provided the principles of price administration: (i) prices should be determined by market force; (ii) the Government should respect the right of price 
determination and price competition of business operators in accordance  with the laws and 
regulations; and, (iii) the Government might a pply measures to administer prices only in case of 
necessity, and should adhere to nondiscri mination and transparency principles. 
Table 6(a):  Price Controls in Lao PDR
 
 HS Number Product description Measure 
1. 2710, 2711 Fuel and gas 
2. 7213-7215 All kinds of steel for construction 
3. 2523 Cement Maximum prices 
4. 1006 Rice Minimum prices 
  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 13 
 
 
  Table 6(b):  Price Surveillance in Lao PDR  
 HS Number Product description 
1. 39,18, 4409, 6904, 6905, 
6907, 6908 Roof, floor and wall tiles 
2. 7907 Roof made of zinc 
3. 4407 Sawn wood 
4. 3208-3210 All kinds of house paint  
5. 3917 PVC pipes 
6. 8701 Tractors 
7. 8413 Water pumps 
8. 8432, 8433 Harvesting or threshing machines 
9. 31 Fertilizer 
10. 2309 Animal feed 
11. 8437 Milling machinery (of cereals and vegetables) 
12. 8437.20 Milling machinery (of rice) 
13. 8712 Bicycles 
14. 8711 Motorcycles 
15.  Student clothing 
16.  Writing tools 
17.  Raw materials for factories 
18. 30 Medicines 
19. 1701, 1702 Sugar 
20. 2103.10.00 Soya sauce 
21. 2103.90.30 Fish sauce 
22. 2922.42.20 Monosodium glutamate 
23. 1507, 1511, 1512, 1513 Vegetable oil 
24. 1101, 1102, 1106 Flour 
25. 0201, 0202, 0203, 0207, 
0209, 0210, 1602 Meat (cattle, pork and poultry) 
26. 03 Sea fish and fresh water fish 
 
35. Price surveillance did not imply any governme nt intervention in the market, but was 
principally a monitoring device for goods where pr ice hikes could have severe repercussions on 
households.  The measure essentially implied insp ection by officials from the Internal Trade 
Department of the Ministry of Industry and Co mmerce or the Provincial Offices of Industry and 
Commerce.  The inspectors controlled that traders di splayed the prices of their products appropriately, 
and conducted spot checks to ensure adherence to th e pricing regulations.  Traders were required to 
maintain proper records and cooperate fully with the inspecting officials.   
36. For rice, minimum prices applied in order to s upport farmers' incomes.  These prices were set 
periodically and the last adjustment was made in  2002.  The minimum prices had been below the 
international market price in almost all years.  In  his view, the price control on rice had no impact on 
the import and export regime of Lao PDR.  Lao PDR was currently  re-examining this measure to 
ensure its consistency with the provisions of th e WTO Agreements.  Considering the socio-economic 
importance of rice, the Government would like to maintain the possibility of using this measure.  
Maximum prices applied to fuel and gas - all of which was imported – and to domestically-produced WT/ACC/SPEC/LAO/4/Rev.1 
Page 14  
 
  and imported construction steel and cement.  The maximum price was guided by the consumer price 
index and calculated by the suppliers, who made allowances for all costs and a profit margin.  
The proposed prices were considered by the Internal  Trade Department of the Ministry of Industry 
and Commerce, and the Department monitored the adherence to the approved maximum prices.   
37. [The representative of Lao PDR confirmed that pricing policy (including price controls) in 
Lao PDR would be applied in compliance with the WTO Agreement, including Article III:4 and XI:1 
of the GATT 1994, Article VIII of the Genera l Agreement on Trade in Services (GATS), and 
Article 4 of the Agreement on Agriculture.  He furthe r confirmed that, to this end, in the application 
of price controls, Lao PDR would take account of  the interests of exporting WTO Members as 
provided for in Article III.9 of the GATT 1994.  La o PDR would publish the lis t of goods and services 
subject to State price control and any changes to this  list in its Official Gaze tte and would continue to 
do so after accession.  The Working Part y took note of these commitments.] 
[The representative of Lao PDR confirmed that , from the date of accession, in the application 
of price controls, Lao PDR would apply such me asures in a WTO-consistent fashion, and take 
account of the interests of exporting WTO Members as provided for in Articles III.4 and III.9 of 
the GATT 1994, and Article 4 of the Agreement on Ag riculture, and in Article VIII of the General 
Agreement on Trade in Services.  Lao PDR would also publish the list of goods and services subject 
to price control and any changes to this list in its Official Gazette.  The Working Party took note of 
these commitments.] 
- Competition Policy 
38. The representative of Lao PDR said that Decr ee No. 15/PMO "On Trade Competition" of 
4 February 2004 provided the legal basis for the promotion of fair competition in Lao PDR.  
The Decree provided for rules, measures and en forcement mechanisms to regulate monopolization 
and all forms of unfair competition in trade, aiming at promoting fair trade, protecting the rights and 
legal interests of consumers, and encouraging business activities to function efficiently in Lao PDR.  
The Decree foresaw the establishment of a Trade Competition Committee within the Internal Trade 
Department of the Ministry of Industry and Commerce, and his authorities were in the process of 
establishing this enforcement agency.    WT/ACC/SPEC/LAO/4/Rev.1 
 Page 15 
 
 
  III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of Executive, Legislative and Judicial Branches of Government 39. The representative of Lao PDR said that exte nsive powers were vested in the National 
Assembly, granted through the Constitution of  the Lao PDR - its first, promulgated on 
15 August 1991, and subsequent ly amended on 6 May 2003.  The 115-member Assembly had 
exclusive authority to decide on matters of wa r and peace; to enact or amend the Constitution and 
laws; to elect or remove the President, the Vice -President (on the recommendation of the National 
Assembly Standing Committee), the President of  the People's Supreme Court and the Public 
Prosecutor-General; to appoint or remove member s of the Government on the recommendation of the 
President; to create or dissolve ministries; to introdu ce or abolish taxes; to ratify or reject Lao PDR's 
accession to international treaties; to grant amnest ies; and to exercise any other rights or duties 
prescribed by law.  The National Assembly supervi sed and oversaw the activities of the executive and 
judicial branches pursuant to Chapter V of the 2003 Constitution.   
40. The executive comprised the President, the Prime Minister and his/her Government and local 
authorities (the Governors of Provinces, the Chiefs of Districts and the Heads of Villages).  
The President was the Head of State and the Chie f of the Armed Forces.  The National Assembly 
elected the President by two thirds majority for five  year terms in office.  Presidential powers, with 
the approval of the National Assembly, included appoi nting the Prime Minister for five-year terms; 
and issuing decrees.  The Government of Lao PDR consisted of the Prime Minister, the Deputy Prime 
Ministers, Ministers and Chairmen of ministry-equiv alent authorities.  The Prime Minister supervised 
the work of the ministries and other government organizations.  The Govern ment was responsible for 
implementing the Constitution, laws and resolu tions adopted by the National Assembly and 
presidential edicts/ordinances and decrees; prepar ing socio-economic development plans and annual 
State budgets for submission to the National Assembly ; the functioning of all branches of central and 
local administration; suspending or revoking deci sions and instructions of ministries, other 
government organizations or local administration if contrary to existing laws; and signing and 
implementing treaties with foreign States.   
41. The Ministry of Industry and Commerce was resp onsible for international and bilateral trade 
policy and his Government's interests in the WTO.  Other line ministries  or agencies involved in trade or 
tariff policy matters were the Prime Minister's Office, the Ministry of Finance (including the Customs 
Department), the Ministry of Agriculture and Forest ry (agricultural policy, sa nitary and phytosanitary 
measures), the Ministry of Health  (health safety relating to food a nd drugs), the Ministry of Public 
Works and Transport (TBT), the Ministry of Energy and Mining (TBT), the Minist ry of Public Security WT/ACC/SPEC/LAO/4/Rev.1 
Page 16  
 
  (TBT), the Ministry of Informa tion and Culture (copyright), the Water Resources and Environment 
Administration (environmental protection) and the National Authority for Science and Technology 
(TBT and protection of intellectual property rights).   
42. Pursuant to the amended Law No. 09/NA "On the People's Court" of 26 November 2009, 
39 Regional Courts had been established to replace the District Courts; the Courts of Appeal had been 
named as the High Courts; and, the Juvenile Courts  would be established at  provincial level and in 
Vientiane Capital.  The new judiciary in Lao PD R consisted of Regional C ourts; Juvenile Courts; 
Provincial and Vientiane Capital Court (Court of  First Instance); High Courts; and the People's 
Supreme Court.  Regional Courts, the lowest tier of the court system, dealt with cases relating to family relations; and civil or criminal cases i nvolving claims of less than KN 300,000,000 or prison 
terms of less than two years.  Appeals of the d ecisions of the Regional Courts and other civil and 
criminal cases were addressed to the Provincial Courts or Vientiane Capital Court.  Appeals of 
decisions of the Provincial Courts or Vientiane Ca pital Court could be brought to the High Courts.  
The Supreme Court was the last resort.  
43. National Assembly Resolution No. 05/NA of 21 October 2003, amending the Law "On the 
People's Courts of Lao PDR", ha d established civil and commercial chambers attached to the 
provincial courts, appellate  courts and the Supreme Court of Lao PDR.  In accordance with Article 48 
of the Law No. 02/NA "On Civil Procedures" of 15 May 2004, commercial chambers had the jurisdiction to adjudicate on busi ness or commercial matters, including cases relating to business or 
commercial contracts and documents (promissory notes,  bills of exchange, che ques, etc.); commercial 
loan Agreements; the bankruptcy and liquidati on of enterprises; cases involving business or 
commercial relationships concerning the importation or exportation of goods, including trade support 
services; and violations of copyright and trademar ks.  The commercial chambers did not have the 
authority to rule on trade-related admini strative decisions of the Government.   
44. On the right to appeal administrative decisions to  the courts or an independent tribunal in line 
with Article X of the GATT 1994 and WTO requirements, the representative of Lao PDR said that natural or legal persons had the right  to lodge complaints in the civil chambers of the courts to protect 
their interests or claims resulting from governme ntal action (Article 47 of Law No. 02/NA "On Civil 
Procedures" of 15 May 2004).  Few administrative ru lings on trade issues had been requested to be 
redressed in the court system since the entry into force of the Law.  Complaints against administrative 
rulings could be lodged by importers or exporter s through administrative or judicial procedures.  
Thus, customs decisions could be appealed to the higher customs authorities and, if not appropriately  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 17 
 
 
  settled, a petition could be filed in court.  The est ablishment of a specialized  Commercial Court or an 
administrative tribunal was not being contemplated at this stage.   
45. The representative of Lao PDR said that Decree No. 106/PM "On the Resolution of Economic 
Disputes" of 15 July 1994 provided a mechanism for dispute resolution, including mediation and arbitration procedures.  The Decree had been upgraded to a Law No. 02/NA "On Resolution of 
Economic Disputes" of 19 May 2005.  An Offi ce of Economic Disputes Resolution had been 
established in the Ministry of Justice.  Arbitra tion sub-centres (branches) had been created in the 
Luang Prabang, Oudomxay and Savannakhet provin ces.  Economic disputes (apart from appeals or 
complaints against the decisions of government bodies) could be brought to the Office of Economic 
Disputes Resolution within three years of the disput e.  Decisions or awards  by the Office of Economic 
Dispute Resolution could be appealed in the co mmercial chambers attached to the courts.   
46.  The representative of Lao PDR confirmed that the current constitution, laws and regulations 
provide the necessary institutional base for the prom pt administrative and judicial review of the 
administrative actions.  The representative of Lao PDR further confirmed that from the date of accession, Lao PDR's laws and regulations would provi de individuals or enterprises affected by any 
administrative action subject to WTO provisions, the ri ght to appeal such action, without penalty, to 
the courts or other independent tribunal in confor mity with WTO obligations, including those set out 
in Article X of the GATT 1994, Article 23 of the Agreement on Subsidies and Countervailing 
Measures, Article 11 of the Agreement on Impl ementation of Article VII of the GATT 1994, 
Article 62 of the Agreement on Tr ade-Related Aspects of Intellectua l Property Rights and Article VI 
of GATS.  The Working Party took note of these commitments. 
47. The representative of Lao PDR said that the hierarchy of legislation comprised - in 
descending order - (i) the Constitution of the Lao PDR;  (ii) Laws adopted by the National Assembly; 
(iii) Edicts/Ordinances promulgated by the Presi dent on the recommendation of the Standing 
Committee of the National Assembly; (iv) Presiden tial Decrees or Orders; (v) Prime Minister's 
Decrees; and (vi) Government resolutions, and instru ctions or decisions of the Prime Minister or 
ministries.  The latter were adopted to implement la ws or decrees.  Although the legislation hierarchy 
did not include treaties and international agreemen ts ratified by Lao PDR (amending or promulgating 
new domestic laws), he noted that such trea ties and international agreements prevailed the 
Constitution and laws adopted by the National Assembly.  Presidential Decree No. 01/PO 
"On Conclusion, Accession and Implementation of  Treaties" of 7 October 2009 regulated the 
negotiation, ratification and impl ementation procedures of interna tional treaties.  Pursuant to 
Article 31, paragraph 4 of this Decree, internati onal treaties prevailed over national laws in case of WT/ACC/SPEC/LAO/4/Rev.1 
Page 18  
 
  conflict.  Presidential and Prime Minister decrees or  orders were based on laws or edicts/ordinances 
specifically authorizing the issue of such decrees or  orders.  Only the National Assembly could amend 
the Constitution (Article 97 of the 2003 Constituti on), or ratify Lao PDR's accession to treaties and 
international agreements such as the WTO.  Following approval of Lao PDR's accession terms by the National Assembly, the Prime Minister's office would notify line ministries and publicize the 
ratification.  WTO Agreements would prevail over domes tic legislation in case of conflict.  However, 
Lao PDR was pursuing a programme of legislative reform - the Plan for Building New Laws and 
Amendment of Laws (2001 to 2006) - to introdu ce WTO-consistent legisl ation and implement WTO 
provisions.  Laws recently adopted or amended included the laws on Customs; Tax; Petitions; 
Forestry; Value Added Tax; Commercial Banks; Stat e Inspection; Resolution of Economic Disputes; 
the amended Law on Business (renamed the Law on Enterprises); Intellectual Property; Livestock 
Production and Veterinary; and Plant Protection.   The representative of Lao PDR updated the 
Working Party on progress in legislative reform and the outlook for further reforms in the Legislative 
Action Plan (document WT/ACC/LAO/9 and its Revisions).   
- Authority of Sub-Central Governments 
48. The representative of Lao PDR said that his country was divided into 16 provinces and 
Vientiane Capital.  The provincial administrati on, comprising representatives of central government 
ministries, administered policies on behalf of - and as determined by - the Government of Lao PDR.  The Office of the Public Prosecutor was responsible for monitoring the full and uniform adherence of 
the laws and regulations by all ministries, minist ry-equivalent bodies, government organisations, local 
administrations, enterprises, and citizens.  The pr ovinces and Vientiane Capital had no authority to set 
tax rates, grant subsidies or regulate trade independe ntly of the central authorities.  The sub-central 
authorities reported regularly to the central government  to ensure that the Government's policies were 
properly implemented.  The Ministry of Industry and Commerce could dispatch envoys to examine 
the implementation of trade-related policies by the local authorities.   
49. [Asked how the central authoriti es might address complaints by  importers or exporters of 
sub-central entities violating WTO provisions, the re presentative of Lao PDR replied that from the date 
of accession, Lao PDR would apply WTO provisions, including Lao PDR's Protocol of Accession, 
uniformly throughout the entire customs territory, including its special economic zones, and other 
areas where special regimes for tariffs, taxes and regulations were established.  Article 4 of the Law No. 07/NA "On Resolving of Public Complaints" of 9 November 2005 provided the legal redress to companies facing an apparent breach of WTO oblig ations by sub-central authorities.  He further 
confirmed that when informed of a situation wher e WTO provisions were allegedly not being applied  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 19 
 
 
  or were applied in a non-uniform manner, centr al authorities would investigate such claims 
[promptly] and, if the charges were found to be valid, act to enforce WTO provisions without 
requiring affected parties to pe tition through the courts.  The Wo rking Party took note of these 
commitments.] 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights  50. The representative of Lao PDR said that busines s entities wishing to engage in importation or 
exportation registered according to  the requirements and procedures laid down in Prime Minister's 
Decree No. 206/PM "On Goods Trading Busine ss" of 10 October 2001 and in Supplementary 
Announcements of the Ministry of Commerce Nos. 0530/MOC of 10 May 2002 and 0538/MOC of 
13 May 2002.  Ministerial Re gulation No. 462/MOC of 1993, which had stipulated eight general criteria 
to be met for import/export regi stration had been revoked with the entry into force of Decree 
No. 206/PM.  Decree No. 205/PM "On Import and Export Manage ment" of 11 October 2001 allowed 
individuals or legal entities with commercial presen ce in Lao PDR (and categorized as investors) to 
engage in import and export activities.  He adde d that Enterprise Law No. 11/NA of 9 November 2005 
also permitted foreign investors with commercial pr esence to engage in import and export activities.  
Decree No. 114/GOL "On the Import and Export of G oods" of 6 April 2011, had replaced the Decree 
No. 205/PM.  
51. The 2005 Enterprise Law, which replaced the Business Law No. 03/94/NA of 18 July 1994, 
regulated the establishment, ma nagement and operation of busi nesses in Lao PDR.  The Law 
distinguished between private; State;  joint; and collective enterprises.  Enterprises could be established 
in the form of a sole-proprietorship; general or limited partnership; or a private limited or public 
company.  Business registration was affected pur suant to the Enterprise Law and its implementing 
Decree No. 68/PM of 28 April 2008.  The place of registration was either at the ministry or the 
provincial level depending on the nature of the enterp rise and type of activit y.  Registration was at 
ministry level - Internal Trade Department, Mini stry of Industry and Co mmerce - for State-owned 
enterprises established by the central authorities and joint ventures with these enterprises; for enterprises engaged in importation of vehicl es, petroleum and luxury goods, or  exportation of wood and wood 
products; and for foreign-invested enterprises w ith a registered capital of US$200,000 or more.  
Province-level registration at the Vientiane Capita l and Provincial Industry  and Commerce Offices 
applied to other domestic and foreign-invested enterprises, Stat e-owned enterprises established by the 
provincial authorities (and joint ventures with them), and commercial enterprises engaging in 
import-export trade outside the scope regulated by a Mi nistry.  The registration of enterprises was split WT/ACC/SPEC/LAO/4/Rev.1 
Page 20  
 
  between the central and provincial authorities to ov ercome human and institutional capacity constraints 
and to speed up the approval process.  The busines s registration process usually took ten working days, 
but could be extended for an additional three wo rking days in case of  controlled businesses 
(Prime Minister's Decree  No. 68/PM, Article 3).  Controlled bus inesses were characterized as highly 
sensitive to national stability, social order, nationa l traditions and the environment, and, therefore, 
required the permission of, and inspec tion by, the relevant authorities, prior to the registration of the 
enterprise.  The list of controlled businesses was being reviewed and amended (Table 2). 
52. The documentation requirements and evaluation crit eria for registration a pplications were the 
same at the ministerial an d provincial levels.  In addition to th e application form, foreign investors 
submitted a copy of the foreign inve stment licence; sectoral approvals,  as appropriate; a statement of 
assets; the bio-data of the owners  and management, photographs and copi es of their passports or other 
ID; the company's rules (for new enterprises); and proof of power of attorney for persons acting on 
behalf of the owners.  Domestic investors submitte d the application form; a copy of the investment 
licence; sectoral approvals, as appropriate; a statem ent of assets; the bio-da ta of the owner(s) and 
management, photographs and copies of their IDs;  and verification of cr iminal record(s).  
The registration forms to be completed were repr oduced in document WT/ACC/LAO/5, Annex I.  
The administrative fees for the registration forms, company stamp form, and for typing the registration 
certificate was set at KN 132,000 (President ial Decree No. 03/PO of 19 November 2008).   
53. Enterprises engaging in trade for commercial purposes impor ted or exported the goods for 
which they had registered.  The goods were listed in their business cert ificates and verified at the border 
by customs officials.  A trading en terprise wishing to expand the scope of its business to other products 
would submit an application to the Enterprises Regist ry Office of the Internal Trade Department of the 
Ministry of Industry and Commerce (and/or Provincial Industry and Comme rce) and needed to fulfil the 
conditions or requirements manda ted for particular products.  A dditional requirements applied to 
specific goods such as medicines (competency and st orage facilities) a nd fuels and gas (safe handling).  
These requirements applied equally to  domestic and foreign firms.  Impor ters of vehicles,  petroleum and 
luxury goods required verificati on from the provincial authorities before  registering with the Ministry of 
Industry and Commerce.  Importers we re not automatically considered wh olesalers, and an importer was 
not required to also be the distributor of the im ported goods.  Importation by en terprises and individuals 
of goods for own or personal use wa s permitted subject to the applic able laws and regulations in 
accordance with Decree No. 114/GOL "O n the Import and Export of Goods".  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 21 
 
 
  54. Some Members requested copies of the legislation governing regi stration and trading rights.  
A Member recalled that the right to import and export, as required under th e GATT 1994, was distinct 
from the business of importing and exporting.  The right to import and export allowed a foreign exporter 
located outside Lao PDR to  enter its products into the customs territory of Lao PDR, clear customs 
formalities, and access the same channels of distri bution as domestic firms, with no requirements or 
conditions imposed on such importation unless these were also imposed on the domestic like product. 
This Member understood that a Lao pr oduct could be sold directly to a customer in Lao PDR whereas an 
imported product could not be so sold as it had to be  imported by a Lao company or by a foreign firm 
with domestic presence.  Lao PDR appeared to deny  foreign firms located outside the country the right 
to import as it did not provide for the registration of  such enterprises in Lao PDR.  In this light, the 
representative of Lao PDR was request ed to explain how foreign firms or  individuals would be able to 
exercise trading rights and be the importer or expor ter of record without esta blishment in Lao PDR.  
Lao PDR was asked to modify its rules to provide fo r trading rights consistent  with WTO requirements, 
specifically Articles III and XI of the GATT 1994.  Lao PDR was also  requested to confirm that any 
registration fees for importers and exporters would, by the da te of accession, conform with 
WTO requirements and approximate th e cost of services rendered.  This Member suggested that 
Lao PDR develop an action plan specifying dates by  which Lao PDR intended to replace or amend 
existing legislation concerning trading rights , in conformity with WTO obligations.   
55. The representative of Lao PDR replied that fore ign firms had the same rights to import as Lao 
firms provided the foreign firms were "physically present" in his country, i.e. registered as an import 
and/or export enterprise in accordance with relevant  laws and regulations of  Lao PDR.  Previously, 
Lao PDR did not provide for regist ration as importers or exporters of firms or  individuals located 
outside the country.  However, in light of Memb ers' comments and following consultations with 
stakeholders, he stated that Pr ime Minister's Decree No. 114/GOL "On Import and Export of Goods" of 
6 April 2011 had replaced Decree No. 205/PM.  Decr ee No. 114/GOL covered substantive elements of 
the WTO Agreements, in particular Articles II, III, X and XI of the GATT 1994 and would further 
liberalize Lao PDR's import and e xport regimes, including trading right s, to bring them in line with 
WTO rules and principles.  The Decree allowed the "importer of record", i.e. importers who had no 
commercial presence in Lao PDR, to import goods into  Lao PDR and sell those goods to enterprises that 
had the rights to distribute such goods.  A copy of  Prime Minister's Decr ee No. 114/GOL had been 
submitted to the Working Party (WT/ACC/LAO/21). WT/ACC/SPEC/LAO/4/Rev.1 
Page 22  
 
  A. IMPORT REGULATIONS 
- Ordinary customs duties 56. The representative of Lao PDR said that Lao PDR had applied the AS EAN Harmonized Tariff 
Nomenclature (AHTN) since 1 October 2003.  The nomenclature was currently based on the 
2007 version of the Harmonized Co mmodity Description and Coding Sy stem (HS).  All MFN customs 
duties were ad valorem , applied on the c.i.f value of the impor ted goods, with a median tariff rate of 
5 per cent and a weighted average tariff of 14.7 pe r cent; 9.5 per cent unweighted.  Lao PDR maintained 
six tariff bands with duty rates of 5, 10, 15, 20, 30 a nd 40 per cent.  Low tariffs (5 to 10 per cent) were 
set on imported raw materials and agricultural inputs.  The highes t rate applied to "luxury goods" 
(document WT/ACC/LAO/5, Annex IV),  or to protect local agricultura l, handicraft and manufacturing 
activities. 
57. The Customs Department in the Ministry of Finance was responsible for customs 
administration, and the Ministries of Finance, Industry and Commerc e, and Agriculture and Forestry 
were the government bodies involved in  setting tariff levels.  Any change in the tariff rates required 
approval by the National Assembly, following up on a proposal from the Prime Minister's Office.   
[Lao PDR's revised offer on goods dated 10 Au gust 2010 and the applied tariff rates dated 
2 November 2006 are available for consultation (see  notice in documents WT/ACC/SPEC/LAO/2/Rev.3 
and WT/ACC/LAO/10, respectively).] 
- Other duties and charges 58. The representative of Lao PDR said that, other than ordinary customs duties, Lao PDR did not 
levy any "other duties and charges" in the meaning of Article II:1(b) of the GATT 1994.  He confirmed 
that Lao PDR would not introduce new "other duties a nd charges".  He further confirmed that Lao PDR 
would bind "other duties and charge s" as defined in Article II:1(b) of the GATT 1994 at zero in its 
Goods Schedule.  The Working Party took note of these commitments.   
- Tariff rate quotas, tariff exemptions 
59. The representative of Lao PDR said that La o PDR did not apply tariff rate quotas on any 
product.    WT/ACC/SPEC/LAO/4/Rev.1 
 Page 23 
 
 
  60. The representative of Lao PDR noted that, in  accordance with Customs Law No. 05/NA of 
20 May 2005, tariff exemptions applied to a range of imported goods, namely (i) foodstuff carried by 
travellers; (ii) household items when moving resi dence; (iii) inherited objects; (iv) personal 
belongings and gifts carried by delegations; (v) pers onal belongings carried by students, civil servants 
and diplomats of Lao PDR; (vi) education material s for non-commercial use; (vii)  scientific research 
materials and equipment; (viii) fuel residues in tanks of motor vehicles; (ix) fuel for air transport; 
(x) samples of goods for non-commercial use; (xi) gi fts, grants or loans from a foreign government; 
(xii) items for humanitarian assistance; and (xiii) na tional defence and public security equipment.  
He added that the 1 per cent tariff as an invest ment incentive provided pursuant to the Law "On the 
Promotion of Foreign Investment" and the Law "On the Promotion of Domestic Investment" had been 
discontinued.  Under the new investment regime, th e import of raw materials, vehicles and equipment 
used for production were exempt from duty (Article 52 of Law No. 02/NA "On Investment 
Promotion").  No exemptions were discretionary, and the Minister of Finance did not have the authority to grant duty exemptions.   
61. The representative of Lao PDR confirmed that any tariff rate quota maintained or introduced 
after the date of accession would be applied and administered in conformity with WTO rules, 
including MFN and national treatment provisions.  Th e Working Party took note of this commitment. 
- Fees and charges for services rendered 
62. The representative of Lao PDR said that th e Customs Service charged some customs 
processing fees on importation and exportation, rangi ng from KN 250 to KN 100,000.  He added that 
the Ministry of Health collected a fee for the inspection of imported medicines (KN 20,000 
per invoice); the biennial registration of impor ted foodstuff subject to controls (KN 50,000 
per product); and a fee for issuing import permits fo r food products which had been converted from an 
ad valorem  (0.05 per cent) to a specific rate (KN 20, 000 per invoice).  The National Authority for 
Science and Technology (NAST) collected a quality inspection fee on imported fuels, steel bars, and 
cement, which had been reviewed, and converted from an ad valorem  to a specific rate (KN 600,000 
per invoice) in accordance with Regulation No. 1226/PMO-NAST of 17 July 2009.  The Ministry of Industry and Commerce and relevant competent licensing authorities charged fees (KN 10,000 or 
KN 40,000 per set) for issuing import or export licences.  Warehouse authorities collected 
non-ad valorem  warehouse fees, which would be based on the type of goods and the period of storage.  
All these fees and charges were enumerated in Table 7 (see Annex). WT/ACC/SPEC/LAO/4/Rev.1 
Page 24  
 
  63. [The representative of Lao PDR confirmed that, from the date of accession, all fees and 
charges for services related to imports and exports  would be operated in conformity with the 
provisions of the WTO Agreement, in partic ular Articles VIII and X of the GATT 1994.  
The Working Party took note of this commitment.] 
- Application of internal taxes to imports 
64. The representative of Lao PDR said that excise duties ranging from 5 to 90 per cent were 
levied on fuels, alcoholic and non-alcoholic beve rages, tobacco products, perfumes and cosmetics, 
playing cards, fireworks, motor vehicles, recreationa l boats, electrical appliances and certain services 
in accordance with the 2005 Tax Law, Article 28.  The goods and services subject to excise tax are 
listed in Table 8.  The current tax rate s did not distinguish between imported and 
domestically-produced goods.  Previously, and as not ed by some Members, the excise duty regime 
based on Notification No. 1061/MOF of 13 June 2 003 had imposed substantially higher duties on 
imports than on domestic production.  Purchases by embassies and international organizations, or for 
externally-funded projects; kerosene; alcohol for medicinal purposes (Accon 90); and exported 
excisable goods; were not subject to excise tax.   
65. The representative of Lao PDR said that Lao PDR applied a turnover tax pursuant to Tax Law 
No. 04/NA of 19 February 2005.  The turnover tax constituted a genera l indirect tax on the 
consumption of goods and services, levied at a rate of  5 or 10 per cent.  According to Article 13 of the 
2005 Tax Law, some goods and services were exempt  from the turnover tax, e.g. equipment imported 
for research projects, imported vaccines, educ ation materials, goods and services related to 
afforestation, and goods and services related to aid projects.  The turnover tax was collected at 
customs checkpoints (on imports) and from wholesaler s.  A refund mechanism allowed businesses to 
deduct turnover tax paid on raw materials from their monthly turnover tax bills.  According to Article 14 of the Tax Law, the taxable base for turnover tax on imported goo ds included import duty 
and excise tax, if applicable, whereas domestically -produced goods circulated in Lao PDR were taxed 
on the basis of the actual sales price, the actual value of the contract for goods produced under 
contractual arrangements, and the actual price paid by the customers for sales on credit.  If applicable, 
the excise tax and fees were also calculated together with the wholesale factory price, as taxable base 
for turnover tax.  
66. In response to specific questions, he confirmed that goods exempt from import duty were also 
exempt from the turnover tax.  However, goods whic h were zero-rated for the purpose of import duty 
were subject to turnover tax.  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 25 
 
 
  67. He added that Lao PDR had begun replacing th e turnover tax with a value added tax (VAT) 
following the adoption of the Value Added Tax Law No. 04/NA of 26 December 2006 and its 
implementing Decree No. 270/PMO of 18 September 2009.  VAT was levied at a single rate of 
10 per cent; exports were zero-rated.  Since 1 Jan uary 2010, VAT was initially being applied to 
businesses with annual turnover exceeding KN 400 milli on.  Some 4,500 to 5,000 entities qualified 
for the new regime at present according to Article 15 of the VAT Law.  Enterprises not required to 
comply immediately with the new VAT system would continue to pay turnover tax pursuant to the 
2005 Tax Law, although any small business wishing to register for VAT would be able to do so.  
The concurrent application of VAT and turnover tax would continue for some time due to the 
complex nature of the VAT, limited institutional capacity, and the prevalence of small and medium 
sized enterprises in the Lao economy.  Lao PDR w as making every effort to keep its tax regime 
WTO consistent.  Asked whether Lao PDR wa s contemplating a VAT refund mechanism for 
non-established taxable persons, he said that VAT was not collected on exports.   
68. While appreciating the efforts made by Lao PDR to convert the turnover tax to a VAT, a 
Member noted that the current bifurcated tax system posed a risk of being discriminatory, and 
requested Lao PDR to table information on its plan s for a unified taxation system.  In reply, the 
representative of Lao PDR said that his Governme nt was reviewing and amending the Tax Law, 
including the provisions on turnover tax in a phased manner to ensure that, upon accession, the tax 
regime would be consistent with Article III of the GATT 1994.  The two turnover tax rates, 5 per cent 
and 10 per cent, had been unified to a single rate  of 10 per cent in accordance with Presidential Edict 
No. 001/OP of 1 March 2011. 
69. The representative of Lao PDR confirmed that, from the date of accession, all laws, 
regulations and other measures relati ng to internal taxes and charges levied on imports would be in 
full conformity with its WTO obligations, includ ing Article III of the GATT 1994.  The Working 
Party took note of this commitment. 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
70. The representative of Lao PDR said that Lao PDR had been streamlining import procedures 
with a view to bringing them into compliance w ith the Agreement on Import Licensing Procedures.  
Originally, Lao PDR had applied a trade balancing po licy, i.e. importers had been obliged to export 
goods to earn the foreign currency used to pay for their imports.  This policy had been replaced by 
indicative import plans, whereby importers of goods not prohibited or otherwise controlled, submitted 
annual plans specifying the total value of the goods to be purchased abroad.  Each shipment would 
then be counted against the amount indicated in the plan, and goods were cleared through customs WT/ACC/SPEC/LAO/4/Rev.1 
Page 26  
 
  without any problem as long as the overall amount ha d not been exhausted.  He added that the 
indicative import plan mechanism had been abo lished through Order No. 0453/MOIC.DIMEX of 
26 March 2007.   
71. The representative of Lao PDR said that Lao PDR prohibited the importation of certain types 
of goods considered to pose a serious threat to the national security, public order, health or the 
environment.  In response to requests for further cl arifications and precision to the list of prohibited 
goods presented in document WT/ACC/LAO/5 (Annex II), he said that the Ministry of Industry and 
Commerce had revised the list of controlled goods, the most recent listing provided in 
Notification No. 2151/MOIC.DIMEX of 30 October 2009.  Eight product groups were subject to 
import prohibition (Table 9).  In response to speci fic questions on the prohibition of used products, 
he stated that the list of goods subject to import pr ohibition was being revised and was expected to be 
adopted by the end of May 2011.  In the revised list, the used goods would be moved from the list of 
goods subject to import prohibition to the list of goods subject to non-automatic licensing.  Asked about "exceptional cases" whereby prohibited goods could be imported subject to the approval 
of the Prime Minister's Office, he said that th is referred to, for example, arms and ammunition 
imported by the Ministry of National Defence for military purposes, or per se  harmful chemicals 
imported for medical or scientific purposes with the endorsement of the Ministry of Public Health.  
To import prohibited products in these exceptional cases,  the importer first submitted a request to the 
relevant authority (e.g. the Ministry of Public He alth), and with the endorsement of the relevant 
authority obtained approval from the Prime Minister's Office. 
72. Decree No. 180/PMO "On Import Licensing Procedures" of 7 July 2009 and Decree 
No. 114/GOL "On Export and Import of Goods" of 6 April 2011 constituted the legislative basis for 
the licensing regime.  The Ministry of Industry and Commerce, in consultations  with other relevant 
ministries, was responsible for issuing Notificatio ns to specify the goods subject to approval or 
non-automatic or automatic import licensing.  Notification No. 0826/MOIC.DIMEX "On the 
Automatic and Non-automatic Licensing of Import a nd Export of Goods" of 3 May 2011, provided an 
updated list of products subject to non-automatic im port licensing procedures, which are detailed in 
Table 10.  According to Notification No. 0826/MOIC .DIMEX, a list of products subject to automatic 
import licensing was also established (Table 11).  
73. Decree No. 180/PMO set out the import licensing procedures.  The licensing procedures were 
implemented uniformly by the Department of Import and Export, Ministry of Industry and Commerce; other relevant Ministries (the Import Licensing Authorities) specified in Tables 10 and 11; or the Provincial and Vi entiane Capital Industry and Comme rce Offices.  The timeframe for  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 27 
 
 
  processing applications for automatic and non-au tomatic import licenses was ten and 30 working 
days, respectively.  Applications were forwarde d to the relevant Import Licensing Authorities.  
The approval procedures and the agencies involved di ffered depending on the nature of the imported 
product.  Fees charged for obtaining an import licence we re listed in Table 7.  If an application for a 
licence was refused, importers were given the reason in writing.  In cases where importers were still 
not satisfied with the solutions provided, the impor ters had the right to appeal, as provided for in 
Article 5.9 of Decree No. 180/PMO. 
74. The Ministry of Industry and Commerce was res ponsible for revising the list of goods subject 
to import and export licensing, in coordination and consultation with the relevant Ministries that 
actually issue the licences.  Consultation meetings with relevant stakeholders, including Ministries 
and business sectors would be conducted before the list was finalized.  The participants of these 
consultations would include representatives from va rious provincial offices and local businessmen.  
The final list of goods subject to imports and exports licensing would be published on the MOIC 
website and offices of the Import Licensing Authorities.  To fully implement Decree No. 180/PMO, the Import Licensing Authorities could elaborate thei r own detailed lists and relevant application 
procedures.  For gold and silver, for example, Decr ee Law No. 01/P "On the Management of Foreign 
Exchange and Precious Metals " of 17 March 2008 applied.  
75. Members requested Lao PDR to modify this  mechanism to fulfil the requirement of 
Article 2.2(b) of the Agreement on Import Licensing Procedures.  In response, the representative of 
Lao PDR stated that the requirements of Article 2.2(b) of the Agreement on Import Licensing 
Procedures were addressed in Article 6 of Decr ee No. 180/PM "On Import Licensing Procedures".  
The list of products subjects to automatic licensing had been published in Notification 
No. 0826/MOIC.DIMEX.  Goods which were not prohibited or subject to the sanitary and 
phytosanitary measures, technical regulations, the automatic or non-automatic import licensing 
(as listed in Tables 10 and 11) proceeded directly to customs clearance without the requirement for 
any import or export licence. 
76. Upon the request of Members, the representative of  Lao PDR said that a draft response to the 
Questionnaire on Import Licensing Procedures was being prepared, which would take into 
consideration the legislation currently being develo ped.  The response to the Questionnaire would be 
submitted to the Working Party by the end of 2011. WT/ACC/SPEC/LAO/4/Rev.1 
Page 28  
 
  - Customs valuation 
77. Based on the initial information provided by Lao PDR (document WT/ACC/LAO/3, 
Annex 4), some Members noted that Lao PDR acknowledged that its legislation was not in 
conformity with the Agreement on Implem entation of Article VII of the GATT 1994 
(Customs Valuation Agreement).  These Members stressed that Lao PDR should focus on establishing 
a valuation system that implemented the hier archy of valuation methods laid down in the 
Customs Valuation Agreement with transaction valu e being the preferred method of appraisement; 
banned the use of valuation methods prohibited accord ing to Article 7 of the Agreement, including 
minimum customs value or arbitrary or fictitious va lues; ensured adequate protection of confidential 
business information; met the transparency and due  process requirements of the Agreement, including 
the means for importers to obtain written informati on on the determination of value and the right of 
appeal; and allowed importers to withdraw their me rchandise against surety or deposit when the final 
determination of customs valu e was being delayed.  Lao PDR should also incorporate the 
Interpretative Notes to the Agreement in  its legislation, as Article 14 of the 
Customs Valuation Agreement stipulated that these not es were an integral part of the Agreement.   
78. In reply, the representative of Lao PDR said that Customs Law No. 05/NA had been adopted 
on 20 May 2005, replacing the 1994 Customs Law, to bring Lao PDR's customs regime into conformity with WTO requirements.  Prime Minister's Decree No. 362/PM implementing the 
Customs Law adopted on 19 October 2007 had been  supplemented by Ministerial Instruction 
No. 0491/MOF "On the Implementation of Cust oms Law and Decree" of 12 March 2009 and 
Ministerial Instruction No. 1398/MOF "On Customs Va luation" of 16 June 2010.  He stated that 
Article 13 of the 2005 Customs Law and Article 4 of the Decree established the hierarchy of the 
valuation methodologies in line with the Customs Valuation Agreement.  The right of appeal was provided for in Article 29 of the Law and Article 9 of the Decree.  In 2011, Lao PDR commenced a 
review of the Decree and relevant implementing regulations with a view to incorporating all 
provisions of the Customs Valuation Agreement, incl uding the Interpretative Notes.  He provided an 
Action Plan in document WT/ACC/LAO/12 and its Re visions, outlining the steps undertaken and the 
objectives, timelines and technical assistance and tr aining needs foreseen to implement the Customs 
Valuation Agreement gradually.  According to the latest revision of the Action Plan, Lao PDR would 
bring its legal framework on Customs Valuatio n into compliance with the Customs Valuation 
Agreement by December 2012.  Full implementa tion of the Agreement would be achieved by 
December 2015.   WT/ACC/SPEC/LAO/4/Rev.1 
 Page 29 
 
 
  79. Among the challenges Lao PDR was facing in im plementing the Agreement, he highlighted 
the lack of proper accounting and record keeping practices among importers, the low rate of voluntary 
compliance with existing rules, and the limited ca pacity of the customs administration to enforce 
valuation provisions.  At present, the Customs Depa rtment at the Ministry of Finance was applying 
minimum values to a large number of products to provi de consistency of  treatment and to deter fraud.  
He stressed that rapid elimination of the minimum values could pose a serious threat to customs 
revenue.  According to the action plan, transaction va lue (and the other valuation methods) would first 
be applied, by the end of 2010, to imports by large multinational and Lao companies with "good" 
compliance records, international organizations, and goods imported for Government projects and 
under Free Trade Agreements (Notification No. 1940/CD of 21 July 2010).  The minimum price lists would be developed into an automated database, to be used primarily as a source of reference in 
determining customs value, during 2011.  By the end of 2012, the valuation prov isions of the Agreement 
would be applied to all imports.  He added that Lao PDR was looking into a risk management and post 
clearance audit system to allow use of valuation me thods, other than the transaction value, on imports 
specifically identified as "high risk" to revenue, either due to the nature of the good, its origin, or the 
compliance record of the importer.   
80. A Member expressed concern about  Lao PDR's reliance on price databases, recalling that the 
World Customs Organization had issued guidelines restri cting the use of such databases.  The databases 
were not to be used to determine the customs value for imported goods, to establish substitute values, or 
as a mechanism to establish minimum values.  Lao PDR should focus on establishing a risk 
management system that would allow it to use the transa ction value to the greatest extent possible, rather 
than devoting scarce resources to a transitory syst em.  Lao PDR was also asked to confirm that any 
value database developed would to be used exclusively as a risk assessment tool.    
81. In reply, the representative of Lao PDR noted that Lao PDR was requesting a transitional period 
to implement the Customs Valuation Agreement.  Th e use of reference price lists or minimum values 
was being phased out.  The number of products subj ect to reference prices had been substantially 
reduced from 2,000 tariff lines (HS 8 digits) in 2009 to 800 tariff lines in 2010.  These goods included:  
motor vehicles and parts; luxury goods (beer, spark ling wine, wine, whisky, cigarette and cigar, and 
perfume); construction materials (cement, roofing an d steel bar); and petroleum and gas.  There would 
be a further reduction to less than 300 tariff lines by  the end of 2011.  Based on the Action Plan, the 
reference price would be eliminated by the end of 201 2.  A risk management system might need to be 
introduced once the new system had been establishe d to address fraud and unde r-invoicing by importers.  
He stated that the value reference database bei ng developed would be used exclusively as a risk 
assessment tool.   WT/ACC/SPEC/LAO/4/Rev.1 
Page 30  
 
  - Rules of origin 
82. The representative of Lao PDR said that Lao PD R did not require certification of origin for 
non-preferential imports.  A certif icate of origin was required for pr eferential access to the Lao PDR 
market under free trade agreements, including the AS EAN Free Trade Area and the Asia-Pacific Trade 
Agreement.  The customs officials in the Ministry of Finance and at the borders were responsible for administering the requirement.  The Department of Import and Export at the Ministry of Industry and 
Commerce and provincial industry and commerce offices ce rtified Lao exports to preferential markets, 
while the Chamber of Comm erce and Industry issued the certific ates for non-prefe rential exports.  
The fees for issuing the cer tificate of origin ranged from KN 40,000 to KN 100,000. 
83. Asked to clarify whether Custom Law No. 05/NA implied that Lao PDR would not accept a 
declaration of origin unless the good was shipped di rectly to Lao PDR from the declared country of 
origin, he referred to Decree No. 228/PMO "O n the Origin of Import and Export Goods" of 
22 April 2010 and Ministerial Guidance No. 103 1/MOIC/DIMEX of 25 May 2010 (replacing Decree 
No. 97/PMO "On the Management and Use of Ce rtificate of Origin" of 8 December 1992).  
The administration and the role of bodies responsib le for administering the origin of goods were 
elaborated in Articles 16 and 19 of Decree No. 228/PM O.  In response to a specific question, he said 
that the term "simple assembly of parts" referre d to the manufacturing or processing operations that 
were deemed basic and not taken into considerati on when determining the origin of goods.  Importers 
had the right to appeal decisions on the origin of goods. 
84. Responding to queries on how Lao PDR applied, or would implement, the requirements of 
Article 2(h) and paragraph 3(d) of Annex II of the WTO Agreement on Rules of Origin regarding 
prior and binding assessments of origin, the represen tative of Lao PDR said that Decree No. 228/PMO 
incorporated the provisions of the WTO Agreemen t on Rules of Origin, including Article 2(h) and 
paragraph 3(d) of Annex II.   
85. The representative of Lao PDR confirmed that certificates of origin would be required for 
preferential purposes only, and would not be neces sary for MFN treatment.  The representative of 
Lao PDR confirmed that, from the date of accession, Lao PDR's preferential and non-preferential rules of origin would comply fully with the WTO Agreement on Rules of Origin, including the 
requirements of Article 2(h) and Annex II, paragra ph 3(d) of the Agreement, which require provision 
of an assessment of the origin of the import upon the request of the importer or any person with a 
justifiable cause.  An assessment shall be issued as soon as possible,  but no later than 150 days after 
the request for such an  assessment, provided that all necessar y elements have been submitted.   WT/ACC/SPEC/LAO/4/Rev.1 
 Page 31 
 
 
  Any such assessment would remain valid for three years.  The Working Party took note of these 
commitments. 
- Other customs formalities 
86. A Member noted that Lao PDR had listed "consul ar fees overseas" in its Memorandum on the 
Foreign Trade Regime and asked whether this mean t that Lao PDR required authentication of import 
documentation by consular officials or other institutions  in the country of export and, if so, what fees 
were applied to such authentications.  The represen tative of Lao PDR replied that this measure was 
abolished on 1 May 2002.   
- Pre-shipment inspection 
87. The representative of Lao PDR said that Lao PD R did not require mandatory pre-shipment 
inspection.  He confirmed, however, that due to valuation problems in border trade, plans had been 
put forward to create a joint-venture inspection comp any (Société Mixte d'Inspection Lao) to combat 
under-valuations and reinforce the collection of tax es.  The company was to have been established 
within three years of signature of the contract of in tention.  This had not been achieved, and all plans 
for pre-shipment inspection had s ubsequently been scrapped.   
88. [The representative of Lao PDR confirmed that  if preshipment inspection requirements were 
introduced, they would be temporary and in confor mity with the requirements of the Agreement on 
Preshipment Inspection and other [related] WTO agre ements.  He further confirmed that [Lao PDR 
would ensure that such enterprises operating on  its behalf complied with the provisions of 
WTO agreements including the Agreements on Tec hnical Barriers to Trade, the Application of 
Sanitary and Phytosanitary Measures, Import Licensing Procedures, the Implementation of 
Article VII, Rules of Origin, the Implementati on of Article VI (Antidumping), Subsidies and 
Countervailing Measures, Safeguards, and Agriculture.  To this end,] the establishment of charges and 
fees would be consistent with Article VIII of th e GATT 1994 and Lao PDR would ensure that the due 
process and transparency requirements of the WT O Agreements, in particular Article X of 
the GATT 1994, would be applied.  He also confirmed that decisions by such firms could be appealed 
by importers in the same way as administrative decisions taken by the Government of Lao PDR.  The Working Party took no te of these commitments.] WT/ACC/SPEC/LAO/4/Rev.1 
Page 32  
 
  - Anti-dumping, countervailing duties, safeguard regimes 
89. The representative of Lao PDR said that Lao PDR had no legislation authorizing the 
application of anti-dumping, countervailing, or safe guard measures at present, but would not exclude 
the possibility that such legislation could be impl emented in the future.  He confirmed that his 
Government would not apply any anti-dumping, countervailing or safeguard measures until it had 
notified and implemented appropriate  laws in conformity with the provisions of the WTO Agreements 
on the Implementation of Article VI of the GATT 1994, on Subsidies and Countervailing Measures, 
and on Safeguards.   
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
90. The representative of Lao PDR said that e xport duties were levied on some products, 
enumerated in Table 12.  This list had been revised  to include all products currently subject to export 
duties and would be adopted in accordance with the Presidential Edict on Export Duties by the end of 
2011.  He added that the export duties on sawn wood and logs had been abolis hed and a stumpage fee 
was collected on all logs, whether for domestic consumption or for export.  Export duties were 
collected for revenue purposes contributing, on average, about KN 43 billion per year to the 
exchequer (equivalent to 1 per cent of total Govern ment revenues).  Lao PDR had no plans, at present, 
to phase out the remaining duties.  Exports were exempt  from the application of internal taxes such as 
the turnover tax.  The requirements and proce dures for business entities wishing to engage in 
exportation were the same as those applicable to importation.   
91. Asked to commit not to introduce export duties on products not included in Table 12, the 
representative of Lao PDR reiterated the importance of export duties to government revenue and the 
need to maintain this measure for development pur poses.  Lao PDR intended to apply export duties to 
a limited number of products.  He took note of Me mbers' suggestion of applying alternative measures 
that could foster the production of those domestic products subject to export duties.  However, he 
stated that Lao PDR had limited possibilities to fost er value-added production an d/or revenue sources.  
He added that Lao PDR would comply with GA TT 1994 and WTO provisions with regard to export 
duties.    WT/ACC/SPEC/LAO/4/Rev.1 
 Page 33 
 
 
  Table 12:  Export Duties  
No. Product Rate of export duty (%) Legal basis 
1. Livestock 5  
2. Coffee 5  
3. Electricity 20  
Semi-finished wooden products  
- lumber 40 4. 
- parquet 40 
Finished wood products  5. 
- plywood 3 Prime Minister Decree No. 187/PM of 
21 October 1994; 
Minister Instruction No. 230/MOF of 
4 March 1995. 
 
- Export restrictions 
92. The representative of Lao PDR said that most goods exported from Lao PDR were not subject 
to any licensing arrangements or restrictions.  For goods subject to export prohibition or licensing, the 
Prime Minister's Decree No. 205/PMO "On Export  and Import Management" of 11 October 2001 
provided the legal basis for the controls, and th e specific goods subject to export prohibition and 
licensing were described in Notifications of the Mi nistry of Industry and Commerce.  The most recent 
list of goods subject to export prohibition cont ained in Notification No. 2151/MOIC.DIMEX of 
30 October 2009 (Table 13).  This list was being revi sed and was expected to be adopted by the end of 
May 2011.  Goods subject to non-automatic and auto matic export licensing were listed in Notification 
No. 0826/MOIC.DIMEX "On the Automatic and Non- automatic Licensing of Import and Export of 
Goods" of 3 May 2011 (Tables 14 and 15).  The export restrictions were app lied to protect national 
security; public order; human, animal or plant life and health; articles of artistic, historic and 
archaeological value; or to conserve exhaustib le natural resources and were, in his view, in 
conformity with Articles XX and XXI of th e GATT 1994.  According to Decree No. 114/GOL 
"On Import and Export of Goods" of 6 April 2011, the licensing procedures set out in Decree No. 180/PM "On Import Licensing Procedures" of 7 July 2009 were also applicable to export 
licensing.  
93. Some Members requested further details on the banning of log exports (and other forestry 
products) and the export licensing arrangements for mi ning and forestry products, in particular the 
policy objectives being served by these licences, whet her the goal was to limit exportation for the 
conservation of these resources or to pursue some  other purpose, and what WTO justifications 
Lao PDR would forward for preserving these licences.  Lao PDR was requested to provide information on comparable restrictions applicab le domestically to conserve forests.   WT/ACC/SPEC/LAO/4/Rev.1 
Page 34  
 
  94. In response, the representative of Lao PDR sa id that mines and forests were exhaustible 
natural resources requiring conservation.  The expl oitation of natural forest was in principle 
forbidden.  A ban on the exploitation of logs and ot her forestry products from natural forests had been 
in place, which complemented the ban of exportati on.  Therefore, he considered the banning of 
exportation of logs and other forestry products  from natural forests could be justified under 
Article XX(g) of the GATT 1994.  He noted that exports of logs from farmed plantations were 
allowed and, in his opinion, the restrictions on log exports were applied in a non-discriminatory 
manner.  
- Export subsidies 
95. The representative of Lao PDR said that the Ministry of Industry and Commerce was 
responsible for export promotion activities.  The Ministry, in collaboration with the Lao National 
Chamber of Commerce and Industry and business asso ciations and groups, promoted Lao products at 
home and abroad.   
96. Some Members noted that Lao PDR was reserving its rights to special and differential 
treatment as an LDC under Article 27 of the Ag reement on Subsidies and Countervailing Measures 
(ASCM), and that Lao PDR appeared to have in cluded incentives contingent on export performance 
within the meaning of Article 3.1(a) of the ASCM in its Law No. 10/NA "On the Promotion of Domestic Investment" (Articles 9 and 11); Law No. 11/NA "On the Promotion of Foreign Investment" (Articles 16 and 18); and implemen ting Decree Nos. 300/PM and 301/PM (Article 15 
and Annex 2).  As Article 25 of the ASCM obliged  WTO Members to notify all subsidies, including 
prohibited subsidies contingent upon export or the use of domestic over imported goods, Lao PDR 
was requested to submit such a document to the Working Party for review.   
97. In reply, the representative of Lao PDR su bmitted a draft notification for the period 
2008 to 2010 in document WT/ACC/LAO/19.  Inform ation was provided on subsidies, prohibited or 
otherwise.  The notification included particulars of the incentives contingent upon export performance 
requirements in the domestic and foreign invest ment legislation (Law Nos. 10/NA and 11/NA, 
Decree Nos. 300/PM and 301/PM); and in the bor der trade zones and special economic zone 
(Decree Nos. 25/PM, 162/PM and 177/PM - see section on "Free zones").  As an LDC, he reiterated 
that Lao PDR reserved its right to avail of the flexibilities in the ASCM on the use of export 
performance requirements.  The existing export perf ormance (and local content) requirements in the 
investment regime, however, had been eliminated  and replaced by incentives provided pursuant to 
Law No. 02/NA "On Investment Promotion" of 8 July 2009.      WT/ACC/SPEC/LAO/4/Rev.1 
 Page 35 
 
 
  C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 98. The representative of Lao PDR said that Lao PDR had formulated an Industry-Handicraft 
Development Plan for the period 1996 to 2005 covering the manufacturing industry, cottage and 
handicraft industries, power generation, mini ng, agro-processing industries, textiles and the 
production of construction materials.   Encouragement of key industri es and exports were priorities in 
the Sixth Five-Year Development Plan for the period 2006 to 2010.  The share of the manufacturing 
sector as a percentage of the GDP had increased from 14.4 per cent in 1990 to 29.2 per cent in 2005.  
The manufacturing industry, in particular food pr ocessing, was the primary source of employment, 
and about 92 per cent of the industrial workforce was employed in factories with less than ten 
employees.  The principal challenges for Lao PDR' s continued industrial development were import 
competition in the case of handicrafts, inadequate infr astructure to attract new industries, a shortage of 
technical and entrepreneurial skills, and the lack of  electricity outside the main population centres.  
Lao PDR was looking for domestic and foreign capita l to improve the production technology and 
working methods, and to improve the infrastructure in rural areas with the available labour force.  
Prime Minister Decree No. 443/PM "On Specific and Special Economic Zone in Lao PDR" was 
adopted on 26 October 2010.  The Decree further elaborated the provisions of Article 59 of 
Law No. 02/NA "On Investment Promotion" and sti pulated principles, regulations, establishment, 
operation and other policies regarding specifi c and special economic zones in Lao PDR. 
99. In response to specific questions concerning the mining sector and power generation, the 
representative of Lao PDR said that Lao PDR sought to  develop a favourable legal system for mineral 
prospecting and exploration and to promote foreign investment in mining.  The Mining Law had been 
revised in 2008 to create a more enabling environmen t for investment in this area.  Key amendments 
included streamlining the licensing procedures and delineating the responsibilities of the central and 
local authorities regulating the mining sector.  Lao PDR did not have a specific national energy plan, 
but had devised a strategy to develop the electricity  sector, including a target to extend the electricity 
grid to 90 per cent of the households by 2020.  For the time being, much of the electricity was being exported.  Electricity production had doubled in 1998 when a new hydro power station had come on 
stream.  In 2007, Lao PDR had gene rated electricity totalling 3,374 m illion kWh, of which net exports 
had amounted to 2,230 million kWh.  Lao PDR had a considerable untapped hydropower potential.  
The Law on Electricity stated that the sector s ought to increase foreign investment in production, 
distribution, exportation, importation a nd the development of this sector.   WT/ACC/SPEC/LAO/4/Rev.1 
Page 36  
 
  100. Some Members noted that certain provisions of Lao PDR's laws appeared to provide 
incentives contingent upon the use of domestic over imported goods within the meaning of 
Article 3.1(b) of the ASCM, namely Law No. 10/NA "On the Promotion of Domestic Investment" 
(Articles 9 and 11); Law No. 11/NA "On the Prom otion of Foreign Investment" (Article 18); 
Decree No. 300/PM "Regarding the Implementation of the Law on the Promotion of Domestic 
Investment"; Decree No. 301/PM "Regarding the Im plementation of the Law on the Promotion of 
Foreign Investment" (Article 34 and Annex 2); and the legislation on the special economic and border 
trade zones (Decree Nos. 25/PM, 162/PM and 177/PM - see section on "Free zones").  Lao PDR was invited to use the format of document G/SCM/6/Rev.1 to provide a subsidy notification.  Lao PDR was requested to (i) identify clearly the subsidies contingent on the use of domestic over 
imported goods in the manufacturing process for whic h it would seek a transition period; (ii) provide 
an action plan to the Working Party with a date cer tain for the elimination of such subsidies; and 
(iii) commit to comply with the obligation unde r Article 25 of the ASCM, as a WTO Member, to 
notify all subsidies, including prohibited subsidies co ntingent upon export or the use of domestic over 
imported goods.  Some Members stressed that LD Cs were exempted from the prohibition of export 
subsidies, but not from the prohibition of local c ontent subsides, and Lao PDR should therefore, in 
their opinion, commit to eliminate all local c ontent requirements by the date of accession.   
101. In response, the representative of Lao PDR presented a draft subsidy notification for the 
period 2008 to 2010 in document WT/ACC/LAO/19.  The notification identified the tax and duty 
exemptions provided by Lao PDR in its investment , special and border trade zones legislation.  
In terms of form of subsidy, the notification distinguished between measures falling within and 
outside the scope of Article 3.1 (a) and (b) of the ASCM.  He added that Lao PDR was taking steps to 
eliminate provisions requiring the use of domestic over imported goods.  His Government had set up a 
Committee under the Prime Minister's Office to pr opose alternative measures to promote Lao PDR's 
industrial policy.  In light of these efforts, the new Law No. 02/NA "On Investment Promotion" of 
8 July 2009 had eliminated incentives based on lo cal content requirements in Lao's investment 
legislation.  The new Decree No. 443/PM "O n Specific and Special Economic Zone" of 
26 October 2010 provided for an exhaustive list of in centives available in those zones, which, in his 
view, were in compliance with the SCM Agreement.   Decree No. 162/PM "On Border Trade Zone at 
Boten, Louangnamtha Province" ha d been terminated.  The local content requirement in the 
remaining zones Savan-Seno Special Economic Zo ne (Decree No. 177/PM) and Dansavanh Village 
Border Trade Zone (Decree No. 25/PM) would be eliminated upon accession.   WT/ACC/SPEC/LAO/4/Rev.1 
 Page 37 
 
 
  102. [The representative of Lao PDR confirmed that, as of the date of Lao PDR's accession to the 
WTO, the programme that provided investment ince ntives contingent upon the use of domestic over 
imported goods for domestic businesses and foreign-i nvested enterprises is no longer valid.  He noted 
that Lao PDR as a Least Developed Country was en titled under the Article 27.2(a) of the Agreement 
on Subsidies and Countervailing Measures.  He also  confirmed that, by the date of accession, a 
subsidy notification, in accordance with Article 25 of the Agreement, would be provided to the 
Committee on Subsidies and Countervailing Measur es.  The Working Party took note of these 
commitments.]    
- Technical barriers to trade, standards and certification 
103. The representative of Lao PDR said that the new Standardization Law No. 13/NA of 
26 December 2007, which replaced the Decree of th e Prime Minister No. 85/PM "On Management of 
Standards and Quality of Produc ts and Goods" of 2 November 1995, constituted the basic legal 
framework for Lao PDR's present system of sta ndards, technical regulations and conformity 
assessment.  Amongst the relevant regulations in this  area he pointed to the Regulation No. 08/MOH 
of 4 January 2005 (e.g. food additives such as acetic  acid and caffeine being subject to surveillance); 
Regulation No. 586/MOH "On the Control on Pr oduction, Export-Imported Safe Food" of 
12 May 2006; Regulation No. 518/MOH "On the Basic Pr inciples in the Application of Sanitary and 
Technical Measures for the Food Safety Ma nagement" of 18 March 2009; Regulation 
No. 1226/PMO-NAST "On Quality Inspection of G oods" of 17 July 2009; Regulation No. 519 
"On Labelling of Prepackaged Food" of 18 March 2009; Regulation No. 336/NSC NAST 
"On Organization and Activities of Centra l Technical Committee" of 22 October 2010;  and Decision 
No. 235/PMO-NAST "On the Organization and Activ ities of the National Standards Council" of 
3 February 2010.  Law No. 07/NA "On Metrolog y" was adopted by the National Assembly on 
20 December 2010.  
104. He provided a checklist of illustrative TBT issues in document WT/ACC/LAO/6 and its 
Revision 1; and an action plan for the implementation of the Agreement on Technical Barriers to Trade in document WT/ACC/LAO/14 and its Revisions (Table 16).  Accordin g to the timelines set 
out in the Action Plan, Lao PDR had launched a re-assessment of the in stitutional, legal and 
regulatory framework, which would be completed by June 2011.  The objectives of this exercise were 
to assess the gaps and overlaps in legal, regulatory and institutional capacity in the areas of technical 
regulations, standards and conformity assessment; a nd, to provide recommendations to ensure full and 
effective implementation of the TBT Agreement.  The Draft Decree "On the Implementation of the Law on Standardization" had been prepared by th e NAST and would be adopted by December 2011.  WT/ACC/SPEC/LAO/4/Rev.1 
Page 38  
 
  Decree No. 363/PM "On Notification and Enquiry of  Trade Related Information" was adopted on 
19 August 2010.  The notification unit and Enquiry  points would be operational upon accession.  With 
technical assistance being provided and additiona l assistance being sought, Lao PDR would ensure 
that its legal framework on technical regulati ons, standards and conformity assessment was in 
compliance with the TBT Agreement by 31 D ecember 2012.  The representative of Lao PDR 
envisaged full implementation of the TBT Agreement by 31 December 2014.  
Table 16:  Action Plan for the Implementation of the TBT Agreement
 
Issues Actions Implementation 
Timeframe Technical Assistance (TA) 
Provided/Sought 
Law on Standardization No. 13/NA dated 26 December 2007 Adopted in 2007 TA received from EU and 
UNIDO (ended in 2008). 
Decree on the Implementation of the Law on Standardization Draft completed by 
NAST in January 2011 and to 
be adopted by Prime 
Minister by December 2011 TA received from TDF and 
USAID. 
Regulation on Quality Inspection of Goods Adopted in 2009  
Regulation on Basic Principles in 
Application of Sanitary and Technical Measures in Food Safety Management in accordance with the SPS Agreement (formerly referred to as Decree on Implementation of Food Law) Adopted in 2009 Recommendations received 
from FAO and WHO.  TA to be requested from TDF for publication, dissemination and training for all stakeholders. 1. Technical 
regulations 
Regulation on Labelling of  
Pre-Packaged Food  Adopted in 2009 TA received from WHO on 
drafting. 
Law on Standardization No. 13/NA dated 26 December 2007 Adopted in 2007 TA received from EU and 
UNIDO (ended 2008). 
Decree on the Implementation of the Law on Standardization  Draft completed by 
NAST in January 2011 and to 
be adopted by Prime 
Minister by December 2011 TA received from TDF and 
USAID. 
Regulation on the Use of Standard Mark for Lao Products Adopted in 2006 TA received from EU and 
UNIDO. 
Regulation on the Organization and Activities of National Standard Council  Adopted in 2010  2. Standards 
Regulation on the Organization and 
Activities of Central Technical Committee Adopted in 2010   WT/ACC/SPEC/LAO/4/Rev.1 
 Page 39 
 
 
  Issues Actions Implementation 
Timeframe Technical Assistance (TA) 
Provided/Sought 
Law on Standardization No. 13/NA dated 26 December 2007 Adopted in 2007 TA received from EU and 
UNIDO (ended in 2008). 
Decree on the Implementation of the Law on Standardization Draft completed by 
NAST in January 2011 and to be adopted by Prime Minister by 
December 2011 TA received from TDF and 
USAID. 
Lao PDR joined MRA under ASEAN for Electrical and Electronic Equipment.  5 April 2002  3. Conformity 
Assessment 
Establishment of testing facilities 
for construction materials, textiles 
and chemicals Deferred TA to be requested. 
Decree on Notification and Enquiry 
of Trade Related Information No. 363/PM dated 19 August 2010 (formerly referred to as Decree on SPS and TBT Notification Centre and Enquiry Points) Adopted in 2010 TA received from EU on 
drafting. 
Establishment of TBT Enquiry Point under Decree on Notification and Enquiry of Trade Related Information No. 363/PM dated 19 August 2010  Decision on TBT Enquiry Point being prepared to strengthen coordination among notification unit, enquiry points and relevant authorities. 
 
Address of TBT Enquiry Point:  
 
Department of Intellectual Property Standardization and Metrology, National Authority for Science and Technology;  PO Box 2279, Vientiane Capital, Lao PDR. Tel/Fax:  85621-243405 Operational upon 
accession     To be adopted by June 2011 TA to be requested for 
training, equipment and database.    TA received from USAID and ADB. 
4. Information 
Procedures 
Establishment of SPS and TBT 
Notification Unit under Decree on 
Notification and Enquiry of Trade Related Information No. 363/PM dated 19 August 2010  Decision on SPS and TBT Notification Unit  SPS and TBT Notification Unit: 
 
Foreign Trade Policy Department, Ministry of Industry and Commerce.  P.O. Box 4107, Phonexay Road, Vientiane Capital, Lao PDR Tel: 85621-450065 
Fax: 85621-450066  
Website: www.laoftpd.com Operational upon 
accession 
    Adopted in March 2011 TA received from USAID and 
ADB for implementation, e.g. 
establishment of database, training of relevant staff on the SPS and TBT Agreements including through exchange experiences and study visit. WT/ACC/SPEC/LAO/4/Rev.1 
Page 40  
 
  Issues Actions Implementation 
Timeframe Technical Assistance (TA) 
Provided/Sought 
Reassessment of the Institutional, Legal and Regulatory Framework for TBT Launched in January 
and expected to complete in June 2011 TA received from Trade 
Development Facility (TDF). 
5. TBT related 
activities  
Law on Metrology No. 07/NA 
dated 20 December 2010. Adopted in 
December 2010 Technical review by UNIDO 
Experts. 
 
105. The representative of Lao PDR said that Lao PDR had become a signatory to the ASEAN 
Consultative Committee on Standards and Quality (ACCS Q) in 1998, and had joined the International 
Organization for Standardization (ISO) in January 2007.  Lao PDR had become a signatory to the 
IEC-APRC Affiliate Country Programme in 2002 a nd was a member of the Asia Pacific Legal 
Metrology Forum (APLMF).  The development of st andards and technical regulations followed the 
ACCSQ principles as stipulated in his Government's National Master Plan No. 1352/PM.DS of 11 August 2000 for the "Development of Standard s and Conformity Assessment in Lao PDR".  
Standards and technical regulations  were developed in consultation with the principal governmental 
stakeholders and the private sector, and - for st andards - work was also being pursued through the 
ACCSQ based on ISO/IEC guidelines.  As a signatory , his Government abided by the decision of the 
ACCSQ that IEC standards be adopted as national standards and notified to the IEC-APRC-ACP.   
106. The National Authority for Science and T echnology (NAST) - formerly the National 
Organization for Science and Technology - in th e Office of the Prime Minister was the central 
management agency for work on TBT-related matters .  For matters dealing with food and drugs, the 
Food and Drug Administration Committee under the Mini stry of Public Health was the responsible 
agency.  Under the auspices of NA ST, the National Standards Council - comprising of representatives 
from the Government and private sector - examined proposed new standards and technical regulations 
elaborated in specific technical committees (Dec ision No. 235/PMO-NAST "On the Organization and 
Activities of the National Standards Council" of 3 February 2010).  The Central Technical Committee 
was also established to provide technical support to  the Standard Council on adopting new technical 
regulations and standards.  Once finalized, th e National Standards Council would forward the 
proposal to the NAST for approval.  Approved tec hnical regulations, standards, or conformity 
assessment procedures were published in the official gazette (Government Journal) and other media.   
107. He said that Lao PDR would further meet the tr ansparency obligations of the TBT Agreement 
in the development of standards and technical re gulations with the adopti on and implementation of 
Decree No. 363/PM "On Notification and Enquiry of Tr ade Related Information" of 19 August 2010.  
The Decree allowed for public review and a reasona ble timeframe for comments in the preparation of 
draft TBT (and SPS) laws and regulations.  The En quiry Points and the Notification Unit would be 
fully operational from the date of accession.  According to Decree No. 363/PM, the single  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 41 
 
 
  TBT Enquiry Point would be located in the Departme nt of Intellectual Property, Standardization and 
Metrology at NAST; and the Notification Unit, res ponsible for the submission of WTO notifications, 
would be established in the Foreign Trade Policy Department of the Ministry of Industry and 
Commerce. 
108. Lao PDR noted that implementing regulations of Decree No. 363/PM were being developed 
to further strengthen the coordination and info rmation exchange among SPS and TBT Notification 
Unit and Enquiry Points.  The Regulation governin g the TBT (and SPS) Notification Unit had been 
adopted by the Ministry of Industry and Comme rce (Decision No. 0471/MOIC of 9 March 2011).  
The National Authority for Science and Techno logy was also finalizing the Regulation on 
TBT Enquiry Point.  Supported by the Asian Development Bank (ADB), USAID, and Trade 
Development Facility (TDF), capacity building progr ams and a public awareness campaign had been 
conducted to ensure the effective operation of the Notification Unit and Enquiry Points.  Technical 
assistance included developing regulat ions and operational manuals, training of staff, developing 
websites, and providing necessary equipment.  The contact details of the TBT Notification Unit and 
Enquiry Point were:  
SPS and TBT Notification Unit:  
Foreign Trade Policy Department  
Ministry of Industry and Commerce P.O. Box 4107, Vientiane Capital, Lao PDR 
Tel:   85621-450065 
Fax:   85621-450066 Website:  www.laoftpd.com  
TBT Enquiry Point:
 
Department of Intellectual Propert y Standardization and Metrology 
National Authority for Science and Technology PO Box 2279, Vientiane Capital, Lao PDR 
Tel/Fax:  85621-243405 
109. Lao PDR was asked to elaborate the policy-ma king process in the TBT area and how it would 
ensure participation of foreign stakeholders.  Th e representative of Lao PDR stated that foreign 
stakeholders participated in the consultative m echanism through the Standard Council and the Central 
Technical Committee.  In addition, Article 3.4 of the newly adopted Decree No. 363/PM 
"On Notification and Enquiry of Trade Related Information" provided that, before adopting a 
TBT measure, all interested parties, both domestic and foreign, would be allowed to submit comments 
on the draft measures, for a period of at least 60 da ys.  The Decree also stipulated that all adopted WT/ACC/SPEC/LAO/4/Rev.1 
Page 42  
 
  technical regulations and standards, and other TB T measures should be publ ished 180 days before 
their enforcements, except in  urgent circumstances.  
110. In response to specific questions, he said that  Lao PDR recognized the results of conformity 
assessment conducted by the relevant bodies in expor ting countries if similar to Lao technical 
regulations and standards, including for c onstruction materials, textiles and chemicals 
(Regulation No. 1226/PMO-NAST "On Quality Inspection of Goods").  The quality attestation should 
be accompanied by a certificate from a testing laboratory accredited by the national standardization body in the exporting country.  The procedure fo r imported steel bars, cement, and petrol was 
stipulated in Regulation No. 1036/STEA-PMO, and for food and drugs in Regulation No. 586/MOH.  
Lao PDR recognized accreditation by international systems of conformity assessment such as the 
International Laboratory Accreditation Cooperatio n (ILAC) and the International Accreditation 
Forum (IAF).  Asked how Lao PDR est ablished and applied the principle of equivalence, he said that 
goods meeting international standards, such as those established by the ISO and the IEC, were cleared 
for import.  Technical assistance was requested to build capacity and fully est ablish the basis to assess 
equivalence.  The principle was still in the process of  being incorporated in national regulations - for 
example in Regulation No. 518/MOH of 18 March 2009 w ith respect to food products.  He added that 
Lao PDR implemented mutual recognition arrange ments (MRAs) on conformity assessment through 
recognising test reports issued by testing labor atories accredited by National Accreditation Bodies of 
ASEAN members that were signatories to the MR As of International Laboratory Accreditation 
Cooperation.  Lao PDR joined ASEAN MRA for El ectrical and Electronic Equipment in 2002 and 
was working toward harmonization of regulatory regime  in electrical and electronic sector by 2010.  
The NAST was in the process of adopting the IEC In ternational Standards and to establish the Lao 
National Accreditation Bureau (LNAB).  Lao PDR's l ong-term goal was to participate in MRAs of 
International Laboratory Accreditation Cooperatio n (ILAC) and International Accreditation Forum 
(IAF), and eventually accept conformity assessment procedures of exporting member countries that were also participants of the MRAs.   
111. Some Members requested more information about the Standardization Law No. 13/NA, 
including its structure and scope, and the distinc tion between voluntary and mandatory requirements.  
A Member asked how Lao PDR would ensure that dom estic regulations adopted before the passage of 
the Standardization Law would conform to the obligations of the TBT Agreement.  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 43 
 
 
  112. In reply, the representative of Lao PDR said that the Standardization Law built upon key 
provisions of the TBT Agreement incorporated in Decree No. 85/PM, as well as other requirements of 
the Agreement.  The Law set out the framework  for standards (Articles 19 and 21), technical 
regulations (Articles 28 and 29) , and conformity assessment procedures (Part V), and would be 
accompanied by more detailed legislation as per th e action plan.  The Standardization Law covered 
the key principles, including non-discrimination (Articles 6 and 44), avoiding unnecessary barriers to 
trade (Article 6), transparency (Articles 21, 22, 27 to 30 and 47), harmonization with international 
standards (Articles 7, 19 and 44); and the concep ts of equivalence and mutual recognition.  
According to Article 20 of the Law, all standard s were voluntary unless specifically indicated in the 
relevant regulations.  An implementing decree for the Law on Standardization was in preparation and 
envisaged to be approved by the Government by December 2011.  With the adoption of the Decree, 
all other regulations on standards and related matt ers in conflict with the Law or its implementing 
Decree would be replaced or annulled.   
- Sanitary and phytosanitary measures 
113. The representative of Lao PDR said that Lao PDR was a member of the WHO Codex 
Alimentarius Commission, the World Organization fo r Animal Health (OIE), and the International 
Plant Protection Convention (IPPC).  The SPS regula tions and standards of Lao PDR were based on 
the relevant international standard s, guidelines and recommendations.   
114. Lao PDR was also participating in a regional harmonization framework of ASEAN regarding 
SPS measures.  As ASEAN Members were adopting the standards and recommendations of the IPPC, 
OIE and Codex Alimentarius on an individual basis, a framework for the harmonization of 
phytosanitary procedures had been developed, app licable only to ASEAN Members.  The scheme was 
initially covering ten agricultural products.  Work on a phytosanitary certifica tion management system 
had been completed.  The Member countries had so  far focused on exchange of legal normative 
documents, sharing the results of scientific studies, an d developing a pest list for some major crops for 
the performance of risk assessment.  In his view , the harmonization framework was consistent with 
the SPS Agreement.   
115. The main laws and regulations in the SPS area were the Food Law No. 04/NA of 
15 May 2004; the Livestock Production and Veterinary Law No. 03/NA of 25 July 2008; the Plant 
Protection and Quarantine Law No. 06/NA of 9 December 2008; the Law No. 03/NA "On Fisheries" of 9 July 2009; the Law No. 01/98NA "On Agricultu re" of 10 October 1998; Ministerial Regulations 
Nos. 0719/MAF "On the Management and Use of Pl anting Material and Seeds in Lao PDR" of 
3 December 1997 and 0639/MAF "On the Quarantine of Plants in the Lao PDR" of 2 July 1993; WT/ACC/SPEC/LAO/4/Rev.1 
Page 44  
 
  Decree No. 66/PM "On Plant Quarantine" of 21 March 1993; Ministerial Regulation No. 0886/MAF 
"On Management and Use of Pes ticide in Lao PDR" of 10 Marc h 2000; Instruction No. 0005/MAF 
for the Regulation on Livestock Management in Lao PDR of 2 January 1997; Regulation 
No. 0004/MAF "On Livestock Management in La o PDR" of 2 January 1997; Decree No. 85/PMO 
"On Livestock Management in Lao PDR" of  31 May 1993; Technical Norms No. 0313/MAF 
"On Livestock Management in the Lao PDR"  of 21 January 2000; Regulation No. 518/MOH 
"On the Basic Principles in the Application of Sa nitary and Technical Measures for the Food Safety 
Management" of 18 March 2009; Regulation No . 586/MOH "On the Control on Production, 
Exported-Imported Safe Food" of 12 May 2006; D ecree No. 363/PM "On Notification and Enquiry of 
Trade Related Information" of 19 August 2010; Ministerial Decision No. 0870/MAF "On Animal Slaughtering and Animal Product" of 18 Marc h 2011; and, Ministerial Decision No. 605/MOH 
"On Adopting Codex Alimentarius Standards as Prior ities" of 27 April 2011.  A National Policy on 
Food Safety (No. 028/PM) had been adopted on 3 February 2009.  
116. At the central level, the key governmental agencies involved in the elaboration of 
SPS measures were the Ministry of Agriculture and Forestry - Department of Agriculture 
(plant health) and the Department of Livestock a nd Fisheries (animal health); and for food safety the 
Ministry of Public Health - the Department s of Food and Drug and of Hygiene and Disease 
Prevention.  The two Departments of the Ministry  of Public Health worked on food safety issues 
under the supervision of the Food and Drug Adviso ry Committee.  The Committee was made up of 
representatives of the Ministries of Industry and Co mmerce, Agriculture and Forestry, and Health, 
and was chaired by the Department of Food and Dr ug.  The implementation of food safety and animal 
and plant health policies was carried out by provinc ial and local authorities in the 16 provinces and in 
Vientiane Capital, e.g. the provincial Health o ffices and the provincial Agriculture and Forestry 
Offices.   
117. He added that in order to comply with the Agreement on the Application of Sanitary and 
Phytosanitary Measures, Lao PDR would need to im prove its risk assessment procedures, upgrade the 
existing legislation, and improve and develop its SPS-related processes and infrastructure.  According 
to Lao PDR's checklist of illustrative SPS issues ( document WT/ACC/LAO/6 and its Revision 2), the 
principles of the Agreement regarding science- based regulations, measures based on necessity, 
equivalence, and non-discriminati on would be fully incorporated in domestic regulations, including 
for measures affecting animal or plant health.  He  provided an action plan for the implementation of 
the SPS Agreement in document WT/ACC/LAO/13 a nd its Revisions (Table 17).  As per the 
Action Plan, Lao PDR also intended to amend or promulgate new decrees or regulations on food 
control, food additives, inspection of meat and live animals (import and trans it), plant inspection and  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 45 
 
 
  certification, plant quarantine, pesticide manageme nt, and complete work on the designation of pest 
and disease free areas.  The transparency provision s of the Agreement would also be addressed, and 
steps were being taken to operationalize the SPS Enqui ry Point and Notification Unit by the date of 
accession.  With the provision of technical assistance,  he expected Lao PDR to be in full compliance 
with the SPS Agreement by 2012.  The representative of Lao PDR stated that Lao PDR would ensure 
its legal framework on food safety, animal and plant health to be in compliance with the 
SPS Agreement by 31 December 2012.  Full implementation of the SPS Agreement would be 
achieved by 31 December 2014. 
Table 17:  Action Plan for the Implementation of the SPS Agreement  
Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Regulation on Bottled Drinking 
Water, No. 585/MOH, dated 
12 May 2006 Adopted in 2006 TA including recommendations 
received from FAO and WHO. 
Regulation on Production, 
Exported-Imported Safe Food, 
No. 586/MOH, dated 12 May 2006 Adopted in 2006 TA including recommendations 
received from FAO and WHO. 
National Policy on Food Safety, No. 028/PM dated 3 February 2009 Adopted in 2009 TA including recommendations 
received from FAO and WHO. 
 
TA received from Trade 
Development Facility (TDF) for 
publication, dissemination and 
training for all stakeholders. 
Regulation on Basic Principles in Application of Sanitary and 
Technical Measures in Food Safety 
Management in accordance with the 
SPS Agreement (formerly referred 
to as Decree on Implementation of 
Food Law) Adopted in 2009 Recommendations received from 
FAO and WHO. 
 
TA received from TDF for 
publication, dissemination and 
training for all stakeholders. 
Regulation on Labelling of Pre-Packaged Food  Adopted in 2009 TA received from WHO on 
drafting. 
Regulation on Food Inspection 
(formerly referred to as Regulation on Food Control System) Regulation being 
drafted by MOH and to be adopted by 
2011 TA received from WHO and FAO 
in drafting regulation and to be requested from TDF and WHO for 
finalizing the regulation and 
guidelines as well as training for 
food inspector. 
Regulation on Food Additives Adopted under 
Ministerial Decision 
No. 605/MOH "On 
Adopting Codex 
Alimentarius 
Standards as 
Priorities", dated 
27 April 2011 TA received from TDF, FAO and 
WHO for drafting and finalizing 
the regulation. 
Ministerial Decision No. 605/MOH 
"On Adopting Codex Alimentarius 
Standards as Priorities", dated 
27 April 2011 Adopted in 
April 2011  TA to be requested from TDF for 
translation, publi cation, training 
and implementation. 1.  Food Safety 
National Association of Testing 
Authority (NATA)'s assessment on 
ISO 17025 accreditation for 
microbiology testing laboratory Started in 2009 
 
On-going TA received from UNIDO. WT/ACC/SPEC/LAO/4/Rev.1 
Page 46  
 
  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
 Improving food processing by 
introducing food hygiene practice, 
GMP GMP Guidelines 
developed and 
training provided in 
2009-2010. TA provided by EC, FAO and 
WHO in November 2009 for 
training and developing guidelines.  
TA requested from Japan for GMP 
through APO project. 
Livestock Production and Veterinary Law No. 03/NA, dated 
25 July 2008 (formerly referred to 
as the Veterinary Law) Adopted in 2008 Recommendations received from 
FAO and EU. 
 
TA requested from FAO and TDF 
for publication, dissemination and 
training for all stakeholders. 
Law No. 03/NA "On Fisheries" Adopted in 2009 TA received for publication, 
dissemination and training for all 
stakeholders. 
TA received from TDF for 
translation. 
Ministerial Decision No. 0870/MAF, dated 18 March 2011 
"On Animal Slaughtering and 
Animal Product Inspection" 
(formerly referred to as Decree on 
Meat Inspection) Adopted in 
March 2011 Recommendations received from 
EU. 
TA to be requested  for publication, 
translation, and dissemination. 
The amendment of Decree on 
Inspection of Live Animals on 
Import and Transit To be adopted in 
December 2011 Recommendations received from 
EU and USAID. 
The amendment of Decree on 
Animal Epidemic Diseases To be adopted in 
December 2011 Recommendations received from 
EU and USAID. 
Decree on Livestock Production 
Management Decree is 
unnecessary as 
required provisions 
already included in 
Livestock 
Production and 
Veterinary Law N/A 
Decree on Animal Quarantine Decree is 
unnecessary as 
required provisions 
already included in 
Livestock 
Production and 
Veterinary Law N/A 
Establishment of a diagnostic 
laboratory Design finished in 
2010 and 
construction was on-
going Implementation f unding received 
from the World Bank. 
Identification of animal disease free areas To begin in 
September 2011 TA to be requested.  ADB and 
World Bank under process of 
designing programme to get 
accreditation from OIE. 
Regulation on Principles in the 
Application of SPS Measures in 
Plant and Animal Administration   To be adopted in 
December 2011 TA received from USAID. 2. Animal 
Health 
Regulation on Criteria for Livestock 
Production and Veterinary Business To be Adopted in 
December 2011 N/A 
3.  Plant Health Law on Plant Protection and 
Quarantine (formerly referred to as 
Law on Plant Protection and Plant 
Quarantine) Adopted in 2008 Recommendations received from 
FAO legal experts, practices of 
neighbouring countries. 
 
TA received from TDF for 
publication, dissemination, 
translation and training for all 
stakeholders.  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 47 
 
 
  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Decree on Implem enting on Plant 
Protection and Quarantine 
[formerly referred to as Regulation 
on Plant Quarantine]  To be adopted by 
2011 TA requested from TDF for 
drafting the update. 
Regulation on Good Agriculture Product Adopted in 2010  
Regulation on Plant Inspection and 
Certification To be drafted by 
2011 TA requested from TDF for 
drafting the regulation. 
Establishment of a laboratory on plant diseases and pests Deferred No funding.  
Identification of pest and disease 
free areas To be completed in 
2012 TA to be requested.  
Regulation on Pesticide 
Management Adopted in 2010 TA requested from TDF for 
translation and publication.  
Decree on Notification and Enquiry of Trade Related Information 
No. 363/PM (formerly referred to as 
Decree on the SPS and TBT 
Notification Centre and Enquiry 
Points) Adopted in 2010 TA received from EU on drafting 
and received from USAID and 
ADB for implementation. 
Establishment of SPS Enquiry Point under Decree on Notification and 
Enquiry of Trade Related 
Information No. 363/PM 
 
Decision on SPS Enquiry Point 
being prepared to strengthen 
coordination among notification unit, enquiry points and relevant 
authorities. 
 
SPS Enquiry Point: 
 
Department of Planning, Ministry 
of Agriculture and Forestry  
PO Box 811, Vientiane Capital,  
Lao PDR 
Tel:   85621-415363 
Fax:  85621-412343 Operational upon 
Accession 
 
 
 
To be adopted in 
June 2011 TA received from USAID and 
ADB for implementation. 
 
 
TA received from USAID and 
ADB. 4. Information 
Procedures 
Establishment of SPS and TBT 
Notification Unit under Decree on 
Notification and Enquiry of Trade 
Related Information No. 363/PM 
 
Decision on SPS and TBT 
Notification Unit, No 0471/MOIC, 
dated 09 March 2011 
 
SPS and TBT Notification Unit:  
Foreign Trade Policy Department, 
Ministry of Industry and Commerce.  
P.O. Box 4107, Phonexay Road, 
Vientiane Capital, Lao PDR 
Tel:  85621-450065 
Fax: 85621-450066  
Website:  www.m-lao.com/ftpd   Operational upon 
Accession 
 
 
 
Adopted in 
March 2011 TA received from USAID and 
ADB for implementation, e.g. 
establishment of database, training 
of relevant staff on the SPS and 
TBT Agreements including through 
exchange experiences and study 
visit. 
 
118. Having examined the information and Action Plan submitted by Lao PDR, some Members 
requested more detailed information concerning  how Lao PDR intended to develop its legal 
framework to incorporate the basic principles of the SPS Agre ement and apply measures in WT/ACC/SPEC/LAO/4/Rev.1 
Page 48  
 
  conformity with the Agreement with respect to f ood safety, and animal and plant health.  Lao PDR 
was invited to be more precise regarding the timelines envisaged to draft, finalize and implement 
outstanding legislation, and to also elaborate furt her on its technical assistance needs to finalize its 
legislation, and enhance the institutional capacity  and laboratory build-up.  Members also sought 
clarifications on specific SPS measures and policies;  in particular, stakeholder participation and 
communication in drafting risk assessments.  
119. In reply, the representative of Lao PDR noted th at, in the area of food safety, the relevant 
provisions of the SPS Agreement were incorpor ated in national regulations (see document 
WT/ACC/LAO/6/Rev.2).  The 2004 Food Law together  with the National Policy on Food Safety 
(No. 028/PM, the Regulation No. 518/MOH, and the Ministerial Decision No. 605/MOH "On Adopting Codex Alimentarius Standards as Priorities", dated 27 April 2011, provided the basis 
for the adoption of new food standards based on the standards of the Codex Alimentarius - a 
programme that would continue on an on-going basis.   On animal and plant health, the inclusion of 
the requirements contained in the SPS Agreement in  the national regulations were in process and 
expected to be completed by the end of 2011.  Please see the updated SPS Action Plan 
(WT/ACC/LAO/13/Rev.4) and the SPS/TBT Checklist (WT/ACC/LAO/6/Rev.2).   
120. The National Policy on Food Safety reiterated that  the standards of Lao PDR should adhere to 
standards, guidelines and recommendations developed by the relevant international organizations, 
including Codex Alimentarius, IPPC and the OIE,  and comply with the SPS and TBT Agreements.  
In addition, key components of the Policy included  the implementation of f ood safety through laws, 
regulations and standards; use of risk analysis  (with stakeholder participation limited to risk 
communication and risk assessment - where data was accessible - for an objective science-based 
evaluation of risk); adoption of an Integrated Food Chain Approach; the promotion of greater international co-operation in the area of food safety, and strengthening human and institutional 
capacities.  All the basic principles of the SPS Agreement such as necessity, non-discrimination, 
transparency, science-based regulations, risk asse ssment, harmonization, an d equivalence had been 
included in Food Law No. 04/NA; National Policy No. 028/PM "On Food Safety"; and, Regulation 
No. 518/MOH.  Specific regulations had been adopt ed for the production, import and export of safe 
food, labelling of pre-packaged food, and for drinki ng water in sealed containers.  Regulations were 
being developed on Good Manufacturing Practices (GMP) and Hazard Analysis and Critical Control 
Points (HACCP), food inspection, and food additive substances. 
121. In response to specific questions, he added th at the "reasonable risk assessment framework" in 
Regulation No. 518/MOH referred to the conventional risk assessment steps of hazard identification  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 49 
 
 
  and characterization, exposure assessment and risk  characterization in food safety management.  
Lao PDR was currently seeking technical assistance in  developing the risk assessment methodology.  
Lao PDR would ensure enough participation of stak eholders in the risk analysis process through a 
rapid alert system within ASEAN, the INFOSAN ne twork of the WHO, and the future operation of 
the SPS and TBT Notification Unit and the SPS Enquiry Point.  In the absence of national standards, 
Codex Alimentarius standards were applicable w ith respect to food residues and contaminants, and 
substances such as sweeteners, colorants, preservatives etc.  On the recognition of foreign standards, 
he said that Lao PDR accepted th e standards and certification of countries that, like Lao, had adopted 
Codex Alimentarius standards.  The SPS certific ation of those countries would be accepted by 
Lao PDR.  He added that Lao PDR's general policy followed inte rnational standards and guidelines 
(Food Law, Article 13) and applied Codex Alimenta rius as the minimum required standards.  If a 
country imposed a standard, which resulted in a highe r level of sanitary or phytosanitary protection 
than provided for by CODEX standards, Lao PD R would accept such standards.  In case a country 
adopted different standards than CODEX standard s, the scientific justification was required. 
122. In response to specific questions on food inspec tions, the representative of Lao PDR said that 
Lao PDR was in the process of drafting a regulati on defining the procedures for food safety inspection 
for import and domestic production, based on Code x standards, guidelines and recommendations, and 
taking account of the non-discrimination principle between domestic and fo reign suppliers and the 
requirements of Article 8 and Annex C of the SPS Ag reement.  This regulation was expected to be 
adopted during 2011.  For imported food products, the documents, Certificate of Analysis (COA), 
Health Certificate (HC), Good Manufacturing Prac tices (GMP), Hazard Analysis and Critical Control 
Points (HACCP), issued by competent authorit y of exporting country, and testing samples were 
required.  Due to limited staff and financial res ource, food inspections were  normally conducted in 
cases of safety alerts or requests by consumers or other sources.  Lao PDR was receiving technical 
assistance from FAO, WHO and UNIDO for developing legal framework, strengthening capacity 
building and equipping laboratory.   
123. Some Member noted that the use of the term "nearly expired food" was inconsistent with 
Codex standards.  In response, the representativ e of Lao PDR said that Lao PDR followed labelling 
requirements as provided for by CODEX standard s, stipulated under Regulation No. 519/MoH 
"On Labelling of Prepackaged Food".  He noted that  the "nearly expired food" concept was only used 
to prevent importation of discounted food, which ex pired by the time of consumption and might cause 
health problems.  He added that Lao PDR was in  the process of reviewing the definition and would 
adapt its regulation accordingly. WT/ACC/SPEC/LAO/4/Rev.1 
Page 50  
 
  124. In the area of animal health, he expected th e 2008 Livestock Production and Veterinary Law 
and the 2009 Fisheries Law to be followed up by  the amendment or adoption of regulations and 
decrees, the identification of animal disease free  areas, and the establishment of a diagnostic 
laboratory.  The representative of Lao PDR noted  that due to financial and human resources 
constraints, Lao PDR did not have any quarantine f acilities at the border checkpoints in place.  At the 
checkpoints, importers were required to provide rele vant documents and were subject to a physical 
inspection.  Lao PDR, therefore, relied on the expor ting countries to undertake quarantine inspections.  
In response to questions on specific SPS measures,  the representative of Lao PDR said that Lao PDR 
currently did not have specific policy on BSE in place.  The disease control policies were generally 
developed on a case by case basis.  In case of an outbreak of BSE, Lao PDR would follow the OIE 
recommendations and guidelines in taking BSE quarantine measures and/or imposing trade 
restrictions.  Regarding the policy on pathogen re duction treatments (PRTs), he said that Lao PDR 
allowed the use of PRT on poultry to reduce contamination by salmonella.  At present, there are no specific "restrictions on which pathogen reduction treatments are used".  However, Lao PDR would 
generally follow OIE recommended practices on sa lmonella control.  Lao PDR did not have an 
official tolerance policy for salmonella. 
125. In response to questions on quarantine measur es, the representative of Lao PDR stated that 
Law No. 03/NA "On Livestock Production and Veterina ry Matters (Articles 45, 46 and 47)" defined 
general provisions on animal quarantine.  The Ministerial Decision No. 0870/MAF "On Animal 
Slaughtering and Animal Product" was adopted on 18 March 2011 and the Regulation "On Principles 
in the Application of SPS Measures in Plant and An imal Administration" was proposed to be adopted 
by December 2011.  In addition, the Decree "On Inspection of Live Animals on Import and Transit" 
and the Decree "On Animal Epidemic Diseases" we re also being amended to incorporate the key 
SPS principles, including the transparency re quirements, which would require all proposed 
regulations to be notified and pub lished before their adoption and enfo rcement.  The test results can 
be obtained at the National Animal Disease Diagnosti c Laboratory at National Animal Health Center 
(NAHC).  On regionalization determination, Lao PDR strictly followed OIE's standards, guidelines 
and recommendations.  Lao PDR automatically adapted its regulations in response to OIE 
announcements on a specific disease or disease-free area. 
126. As for plant health, a new Law on Plant Protec tion and Plant Quarantine had been adopted in 
December 2008.  A technical assi stance project to strengthen the regulatory framework on plant 
health had begun in mid-2008 under the auspices of th e Enhanced Integrated Framework.  Legislation 
in the pipeline included updating or drafting regulat ions on plant quarantine, pesticide management, 
plant inspection and certification, and the identifi cation of pest and disease free areas.  He provided a  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 51 
 
 
  list of quarantine pests (2005) in document WT/A CC/LAO/11, Annex 2.  As a member of IPPC, 
Lao PDR followed IPPC guidelines in the implementation of SPS measures. Plant inspection was 
conducted to analyse the quality of plants and the existence of any chemical residues, pests and 
diseases in order to ensure safety for plant health and consumption.  Lao PDR did not require plant 
inspection for imported plants. However, an importe r was obliged to provide plant health certificate 
issued by relevant competent body of exporting co untry.  In response to a question regarding the 
Regulation "On Pesticide Manageme nt" adopted in 2010, the representative of Lao PDR said that the 
Regulation covered:  (i) registration of pesticide;  (ii) management of production, import, export, 
distribution, transportation, storage and transit of pesticide; (iii) use and disposal of pesticides; 
(iv) packaging, labelling and advertising of p esticides; and (v) management and inspection of 
pesticide.  He added that Lao PDR followed C ODEX standards in setting and testing the Maximum 
Residue Levels (MRLs).   
127. He added Lao PDR was in the process of elaborating detailed technical assistance 
requirements for bringing its entire regime in to compliance with the SPS Agreement under the 
Enhanced Integrated Framework.  The Ministry of Agriculture and Forestry in collaboration with the 
Ministry of Public Health and the National Aut hority for Science and Technology was finalizing a 
project, i.e. the Trade Development Facility, unde r a multi-donor trust fund.  The key components of 
the project were (i) strengthening the SPS in stitutional, legal and regulatory framework; 
(ii) determining risk-based policies and control meas ures for SPS; and (iii) strengthening the role of 
the private sector in the SPS regime. 
128. Asked how the transparency provisions of th e SPS Agreement would be applied in Lao PDR, 
he said that, pursuant to Decree No. 363/PM "O n Notification and Enquiry of Trade Related 
Information" of 19 August 2010.  Lao PDR was estab lishing its SPS Enquiry Point at the Department 
of Planning in the Ministry of Agriculture and Forestry, and its SPS (and TBT) Notification Unit at 
the Foreign Trade Policy Department in the Minist ry of Industry and Commerce.  The regulatory and 
institutional framework was in preparation, and La o PDR was receiving technical assistance to train 
staff.  Regulations were being developed to further strengthen the coordination and information 
exchange among SPS and TBT Notification Unit and Enquiry Points.  Decision No. 0471/MOIC 
"On SPS and TBT Notification Unit" had been adopted by the Ministry of Industry and Commerce on 
9 March 2011.  The Ministry of Agriculture and Forestry was finalizing the Regulation on 
SPS Enquiry Point.  The SPS Enquiry Point and the Notification Centre would be operational by the date of accession to the WTO.  The contact deta ils of the TBT Notification Unit and Enquiry Point 
were: WT/ACC/SPEC/LAO/4/Rev.1 
Page 52  
 
  SPS and TBT Notification Unit:
 
Foreign Trade Policy Department  
Ministry of Industry and Commerce PO Box 4107, Vientiane Capital, Lao PDR 
Tel:   85621-450065 
Fax:   85621-450066 
Website:  www.laoftpd.com 
SPS Enquiry Point:
 
Department of Planning 
Ministry of Agriculture and Forestry  
PO Box 811, Vientiane Capital, Lao PDR 
Tel:  85621-415363 
Fax:  85621-412343 
129. Decree No. 363/PM (Article 3.4) also provide d for that before adopting SPS measures, all 
interested parties, both domestic and foreign, wo uld be allowed a period of at least 60 days for 
comments on the draft SPS measures.  The Decree also required that all adopted SPS measures be 
published 180 days before their enforcements , except in urgent circumstances.     
130. In response to specific questions, he said th at Regulation No. 0886/MAF - which concerned 
the use of pesticides in agriculture - required an  import permit from the Department of Agriculture 
(or the Agriculture and Forestry Office in the prov inces and Vientiane Capital) for each shipment, and 
prior registration of the pesticide with the Depart ment or Offices.  The registration was valid for 
two years, but the Department or Offices cons idered the import permit the only possible way to 
administer the Regulation.  He noted that Lao PDR continued to experience incidences of imported 
food and beverages having expired shelf life.   Regulation No. 519/MOH "On Labelling of 
Prepackaged Food" defined the expiry or use-by da te as the period after which the product, under any 
stated storage conditions, would not have the a ttributes expected by the consumer.  A quality 
certificate was required for all imported food, and for each shipment.  The certificate was a precondition for obtaining an import licence prior to the actual importation of the product.  As Lao PDR did not have resources to undertake extens ive analysis and testing, certificates issued in 
the exporting country were recognized and accepted.   The Food and Drug Department was the only 
institution in Lao PDR capable of examining and ce rtifying food products.  Registration forms for 
quality control on domestically-circulated foodstu ff were reproduced in document WT/ACC/LAO/5, 
Annex VII.    WT/ACC/SPEC/LAO/4/Rev.1 
 Page 53 
 
 
  - Trade-related investment measures 
131. Some Members noted that Law No. 10/NA "On the Promotion of Domestic Investment", 
Law No. 11/NA "On the Promotion of Foreign I nvestment" and its implementing regulations 
(Decree Nos. 300/PM and 301/PM) encouraged ex port-oriented production and import substitution 
and would, with these objectives in mind, appear to  include measures falling within the scope of 
the Agreement on Trade-Related Investment Meas ures.  In particular, Decree Nos. 300/PM and 
301/PM included provisions for import duty and tax concessions and eligibility criteria for investment 
incentives (Annex 2, footnote) that could be construed as local content or export performance requirements.  Lao PDR was reminded that in orde r to utilize the transitional arrangements under the 
TRIMs Agreement, Lao PDR would be required to identify the precise measures for which it would 
be seeking transitions.  Lao PDR should also indicat e how long within the allowable period it believed 
it would be necessary to maintain the measures, and commit to the elimination of all measures 
inconsistent with the TRIMs Agreement within a date certain, e.g. seven years from the date of 
accession to the WTO.  In case Lao PDR would like to  avail itself of the transitional period allowed 
for in the Hong Kong, China Ministerial Declaratio n, Lao PDR was requested to confirm that the 
phase-out period for existing measures would last fo r seven years from the date of accession and have 
effect for those existing measures notified to the Council for Trade in Goods.   
132. In reply, the representative of Lao PDR took note of the request for TRIMs measures to be 
notified.  Bearing in mind the flexibilities granted to LDCs through the Sixth WTO Ministerial 
Conference Declaration (paragraphs 35 to 38 and Annex F), he said that Lao PD R would like to avail 
itself of the available transitions and phase out its incompatible TRIMs measures as foreseen for 
LDC Members.  A Committee had been set up under the Prime Minister's Office to propose alternative measures to promote Lao PDR's industria l policy.  He added that Lao PDR had revamped 
its investment legislation with Law No. 02/NA "On Investment Promotion" of 8 July 2009 replacing 
Law Nos. 10/NA and 11/NA and annulling Decree Nos. 300/PM and 301/PM.  Law No. 02/NA did 
not include provisions on import duty and tax c oncessions and eligibility criteria for investment 
incentives that could be construed as local content or export performance requirements.   
- State-trading entities 
133. Noting a preliminary statement by the representative of Lao PDR that Lao PDR did not have 
State trading enterprises in the sense of Article XVII of the GATT 1994 and the working definition of the Understanding on that Article, but  that his Government would conti nue to consider this issue and 
report to the Working Party if necessary, some Members requested Lao PDR to elaborate on the 
functioning of State-owned enterprises engaging in imports or exports of goods and State "controls" WT/ACC/SPEC/LAO/4/Rev.1 
Page 54  
 
  on certain imports and exports, re minding Lao PDR that the obligations of the GATT Article XVII 
and the Understanding on that Article applied equa lly to all enterprises owned or controlled by the 
State,  as well as to enterprises to which the State gr anted special or exclusive privileges.  In reply, the 
representative of Lao PDR said that 16 State-ow ned enterprises were currently involved in 
importation or exportation of  goods (Table 5).   
134. A Member requested Lao PDR to elaborate fu rther on whether the 16 enterprises (Table 5) 
operated solely in accordance with commercial cons iderations in their purchases or sales involving 
either imports or exports, and to clarify if they acted in a manner consistent with the 
non-discriminatory principles enshrined in the GATT 1994.   In reply, he said that none of the listed 
enterprises had monopoly or special rights or privile ges used to influence the level of imports.  
These enterprises had been established and operated on the same basis as private enterprises engaged 
in foreign trade, and his Government did not inte rfere in their decision-making.  No enterprise - 
private or State-owned - imported or exported good s on behalf of the Government or engaged in 
stock-building from international trade.  State "contro l" in the context of international trade in goods 
referred to licensing and regulation, and did not im ply the designation of specific firms to conduct 
trade, the setting of prices or profits, or State decision-making regarding purchases or sales.   
- Free zones, special economic areas 
135. The representative of Lao PDR said that La o PDR had established two border trade zones 
(Boten and Dansavanh Village) and one specia l economic zone (Savan-Seno) pursuant to 
Decree No. 25/PM "On Dansavanh Village Border Trade Zone" of 25 March 2002; 
Decree No. 162/PM "On Border Trade Zone at Bo ten, Louangnamtha Provin ce" of 8 October 2002; 
and Decree No. 148/PM "On Savan-Seno Special  Economic Zone" of 29 September 2003.  
Decree Nos. 25/PM and 162/PM set out the requi rements for investing in the trade zones 
(Articles 5 to 7) as well as the incentives accorded to the projects (Articles 14 to 24).  Natural or legal 
persons, regardless of nationality, could invest in these zones and engage in manufacturing, services 
or trading activities.  
136. In addition to the incentives available under the investment regime and in accordance with 
Decree Nos. 25/PM and 162/PM, investors in the bo rder trade zones could avail of import and export 
duty exemptions on goods exported from the zones ( as well as duty-free imports for exhibitions and 
trade fairs); reductions or exemptions on profit ta x with a tax holiday of four years followed by 
payment of half the applicable rate over a grace pe riod of four years (losses could be carried forward 
and the tax was rebated if profits were reinvested in the zones); income (dividend) tax exemption 
during the profit tax exemption period; and exemp tion from turnover tax (except for goods that were  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 55 
 
 
  imported for a trade fair or exhibition and subseque ntly sold in the border trade zone).  Investors 
could also avail of an exemption from the land lease fees for a period of five to seven years. 
137. As for the special economic zone, Article 6.4 of Decree No. 148/PM indicated that 
preferential duty and tax treatment would be determined under separate legislation 
(Decree No. 177/PM "On Management Regulation a nd Incentive Policies regarding the Savan-Seno 
Economic Zone" of 13 November 2003).  Pursuant to  Decree No. 177/PM, investments in the special 
economic zone were exempt from turnover, excise and land tax.  Construction material, machinery, 
raw materials, semi-finished products, vehicles and spare parts used as inputs for production were exempt from customs duty.  In addition, reductions  or exemptions from profit tax were granted for 
periods ranging between two to 10 years as outlin ed in document WT/ACC/LAO/19 (pages 10 to 12).  
138. In response to specific questions, the represen tative of Lao PDR confirmed that goods 
produced in the border trade zones and in the speci al economic zone would be  subject to import duty 
when entering the normal customs territory of Lao PDR.   
139. He noted that certain incentives in the special economic zone an d the border trade zones were 
contingent upon export performance and the use of lo cal content.  Profit tax exemptions or reductions 
in the special trade zone were contingent upon export performance (enterprises exporting 70 per cent 
or more of their output could avail of a ten y ear tax holiday, while enterprises exporting between 
30 and 69 per cent were eligible for seven years,  and those exporting less than 30 per cent were 
eligible for a five year exemption period).  In a ddition, enterprises sourcing 50 per cent or more of 
their raw materials domestically could avail of a re duced profit tax rate.  In the border trade zones, a 
discount was applied to the ordinary rate of cust oms duty depending on the percentage of local raw 
materials and the value added in the zones.  Goods w ith local content up to 20 per cent were subject to 
a flat 10 per cent reduction in the customs duty (e.g. 4.5 per cent instead of 5 per cent).  The customs 
duty for goods with more than 20 per cent local c ontent was rebated by a percentage corresponding to 
the percentage of local content in the good in question.   
140. Some Members urged Lao PDR to remove th e differentiated treatment between imported 
products and the goods produced in the border trad e zones/special economic z one and to apply normal 
import duties, without reductions, when such good s entered the domestic market.  In reply, the 
representative of Lao PDR said that legislation was being reviewed to ensure compliance with 
WTO principles and the ASCM.  Decree No. 443/PM  "On Specific and Special Economic Zone" was 
adopted in October 2010.  Decree No. 162/PM had been amended, while Decree Nos. 25/PM and 
177/PM were being revised with respect to provi sions on the use of domestic over imported goods.  WT/ACC/SPEC/LAO/4/Rev.1 
Page 56  
 
  However, the representative of Lao PDR reite rated the flexibilities on export performance 
requirements provided to LDCs by the Agreement on Subsidies and Countervailing Measures. 
- Government procurement 
141. The representative of Lao PDR said that gove rnment procurement was regulated by Prime 
Minister Decree No. 03/PM "On Goods, Works, Main tenance, and Services" of 9 January 2004, and 
Regulation No. 063/MOF of 12 March 2004.  Th e requirements of bidding documents and 
procurement manuals were develope d and used by government agencies and State-owned enterprises 
at the central and provincial levels.  The Procurem ent Monitoring Office at the Ministry of Finance 
was responsible for administering the procuremen t of all ministries, governmental agencies, the 
provinces and Vientiane Capital, and State-owned enterprises.   
142. The regulations stipulated seven methods of procurement and defined the precise conditions 
for using each procedure, i.e. (i) public bidding whereby individuals, companies, enterprises, joint 
ventures or international enterprises obtained equal opportunity to submit bids; (ii) limited bidding, 
whereby the number of suppliers was limited, but the procuring entity was required to ensure a 
competitive price and sufficient capacity; (iii) price comparison - domestic and international.  
Domestic price comparison implied offers being sought from at least three qualified domestic 
suppliers, and international price comparison woul d involve at least three qualified international 
suppliers from at least two countries; (iv) direct c ontracting, in which case the procuring entity would 
negotiate the contract terms and c onditions directly with one or more  supplier(s).  Approval for this 
procedure was subject to certain conditions and decided case by case; (v) international competitive 
bidding, where bidders could be domestic or fore ign companies and the bidding notification was 
available abroad.  A margin of preference was taken into account for comparison between domestic 
and foreign suppliers; (vi) pre-qualification of bidd ers, e.g. for large-scale, technically complex and 
high value projects, where the suitability of the bidders would be assessed by a tender committee, a 
number of companies would be short-listed, and th e selected candidates would be invited to submit 
bids; and (vii) two-stage bidding, whereby technical  and methodological requirements were taken into 
account at the first stage, followed by an eval uation of the proposals at the second stage.   
143. Asked whether Lao PDR would consider joining the Agreement on Government 
Procurement, the representative of Lao PDR said the decision would depend on the capacity of governmental agencies to manage the term s and conditions of the Agreement.    WT/ACC/SPEC/LAO/4/Rev.1 
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  - Transit 
144. The representative of Lao PDR said that Lao PDR was a land-locked country dependent on 
the effective cross-border transit of goods.  ASE AN had developed arrangements to facilitate transit 
trade among its members and to reduce costs in the cross-border movement of goods.  Goods in transit through Lao PDR were regulated accordi ng to Article 33 of the Customs Law (2005) and 
Article 8 of Ministerial Instruction No. 0491/MOF of  16 June 2009.  Goods in transit were exempt 
from import and export duties.   
- Agricultural policies 
(a) Imports 
145. The representative of Lao PDR said that the impor t duty on agricultural products ranged from 
5 to 40 per cent with a simple average of 18.8 per cent.  As agriculture was the backbone of the Lao 
economy, high tariffs were maintained on products co mpeting directly with local production.  In the 
past, imports of all animal parts and agricultural goods produced locally such as chillies, aubergines, 
tomatoes, bananas, lemons and other fruit ha d been banned (Notification No. 870/MOC of 
19 September 1996).  Presently, Lao PDR did not main tain any seasonal restrictions, prohibitions or 
other controls on the importation of agricultural pr oducts other than those listed in Tables 9, 10 
and 11.  Although import controls had been relaxed in recent years, Lao PDR nevertheless reserved 
the right to impose import restrictions on rice, the predominant staple in the traditional diet, 
particularly if measures were required to underpin th e minimum farm gate prices established for rice.  
Rice (HS 100610, 100620, 100630 and 100640) w as subject to non-automatic import licensing 
requirements.  According to Notification No. 0100/MOC of 28 January 2000, each province was 
required to prepare an annual plan to balance th e demand for rice.  In case of short supply, the 
provincial governor could approve the importation of rice.  He added that any existing or future 
import restriction on rice would be applied in acco rdance with WTO Agreements.  In response to a 
specific query, he said that the procedure for obt aining import permits for agricultural commodities 
and agro-chemicals demonstrated with a flow chart, circulated in document WT/ACC/LAO/5 Annex V was no longer valid.  The list of goods s ubject to automatic import licensing was adopted 
(Notification No. 0826/MOIC.DIMEX of 3 May 2 011), which included certain agro-chemicals and 
agricultural products and the procedures for their importation. 
146. Some Members noted that Lao PDR was seek ing recourse to apply Special Safeguards 
(SSGs) for some products in its most recent market  access offer.  Lao PDR was invited to provide the 
rationale for this request.  In reply, the representa tive of Lao PDR explained that Lao PDR previously WT/ACC/SPEC/LAO/4/Rev.1 
Page 58  
 
  maintained quantitative restrictions, such as prohib itions or licensing requirements for these products.  
He noted that once Lao PDR liberalized its tr ade regime, Lao PDR intended to maintain the 
possibility to apply SSG measures for some products in order to limit the unforeseen risk and mitigate 
adverse effects on vulnerable poor farmers, who ac counted for more than 30 per cent of Lao PDR's 
population and were living under the poverty line. 
(b) Exports 
147. The representative of Lao PDR said that some goods were prohibited to export (Table 13) and 
some products were subject to export licensing (Tab les 14 and 15).  An export tax of 5 per cent was 
levied on coffee beans and livestock.  His Governme nt would reserve the right to apply controls on 
the exportation of rice for food security considerations.   
148. A Member noted that Lao PDR had no agricultural export subsidies, but would like to 
maintain a right to use such s ubsidies as long as it remained an LD C.  Lao PDR was encouraged to 
maintain standstill on export subsid ies for agricultural products.   
149. In reply, the representative of Lao PDR noted that Lao PDR did not envisage such measures 
at this stage, but welcomed the underlying developmen t rationale of the flexibilities granted to LDCs.   
(c) Internal policies 
150. The representative of Lao PDR said that his count ry was predominantly an agrarian economy 
as the agricultural sector accounted for more than 50 per cent of Lao PDR's GDP, employed about 
80 per cent of the workforce, and provided a livelihood - often at a subsistence level - to the majority 
of the population.  Rice was the staple crop cultivat ed and consumed domestically.  Other grains and 
pulses, vegetables, fruit, livestock, tobacco and coffee were also produced in Lao PDR.   
151. The representative of Lao PDR provided in formation on domestic  support and export 
subsidies in the agricultural sector fo r the period 2001 to  2003 in document 
WT/ACC/SPEC/LAO/1/Rev.1.  Expenditures on "green box" measures – principally the funding of 
research, pest and disease control, training and exte nsion and advisory services - had averaged some 
KN 56.7 billion (US$5.6 million) per year during this period.  In addition, Lao PDR reported outlays 
on development programmes (Article  6.2) for input subsidies (investment and operating credits 
provided by the Agriculture Promotion Bank to low-in come farmers in poor regions, and electricity at 
reduced rates to poor farmers), and a market pr ice support programme for rice.  The minimum farm 
gate price for rice (in husk) was based on production costs and calcul ated annually; and the external 
reference price was derived from data released by the University of Arkansas.  However, the  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 59 
 
 
  minimum farm gate price had been  well below the external referen ce price throughout the period.  
The Ministry of Agriculture and Forestry had also  spent an average KN 86.4 billion (US$8.5 million) 
per year on irrigation.  All support was well below the 10 per cent de minimis  level.   
152. He noted that his Government had raised  US$19,500 in 1994 to establish a State-owned 
enterprise to purchase farm products at market prices  and resell the goods in the domestic market at a 
later time to stabilize the market.  The enterprise  had operated with a profit since its establishment, 
and no further funding had been necessary.  The Minist ry of Agriculture and Forestry, the Ministry of 
Industry and Commerce, and the National Statistics Centre were developing a market information 
system for the benefit of agricultural producers.   
- Trade in civil aircraft 
153. In response to a specific question concerning th e current import duty on civil aircraft and 
aircraft parts, the representative of Lao PDR said that the rate on aircraft parts was 10 per cent. 
- Textiles regime 
154. The representative of Lao PDR said that textiles were subject to the same general measures 
applied to other products.  The simple averag e applied import duty on textiles and clothing was 
9.46 per cent.   
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- GENERAL - Industrial property protection 155. The representative of Lao PDR provided a technical note on the implementation of 
the Agreement on Trade-Related Aspects of Inte llectual Property Rights (TRIPS) in document 
WT/ACC/LAO/7, and an Action Plan for the implem entation of the TRIPS Agreement in documents 
WT/ACC/LAO/15 and Revisions (Table 18).  With th e provision of technical assistance and national 
capacity building, the implementation of the TRIPS Agreement would be achieved, at the latest by 
December 2015, according to the action plan.  He ad ded that Lao PDR, as an LDC, intended to avail 
of the special and differential treatment provi sions provided for under the TRIPS Agreement and 
WTO Ministerial Declarations (paragraph 47 of  WT/MIN(05)/DEC and IP/C/40 refers).  
156. Industrial property protection was provided thro ugh the Prime Minister's Decree No. 06/PM 
"On Trademarks" of 18 January 1995 and Regulation No. 466/STEA-P MO "On the Registration of WT/ACC/SPEC/LAO/4/Rev.1 
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  Trademarks" of 7 March 2002; Decree No. 01/PM "O n the Protection of Patents, Petty Patents 
(Utility Models) and Industrial Designs" of 17 Jan uary 2002, and Regulation No. 322/STEA-PMO 
"On the Implementation of the Patents Decree" of 18  February 2003.  He added that a new Law – the 
Intellectual Property Law No. 08/NA of 24 December  2007 - covering copyright and related rights, 
trademarks, trade secrets, geographical indications, industrial designs, patents, petty patents, layout 
designs of integrated circuits, and the protectio n of plant varieties had entered into force on 
14 April 2008.  The 2007 Intellectual Property Law superseded provisions of the above-mentioned 
decrees and regulations to the extent that those provisions were incompatible with the 
2007 Intellectual Property Law.  The Law would be  complemented by an implementing decree and 
regulations to meet the requirements of the WTO.  The estimated timeframe for the adoption of these 
decrees and regulations was by 2011 to 2012 (see timeline in the revised TRIPS Action Plan in 
document WT/ACC/LAO/15/Rev.4).   
157. A Member noted that Article 2 of the Intell ectual Property Law defined intellectual property 
as a "work of the human mind through inventions an d creations having economic value and benefit in 
social development".  This Member asked Lao PDR to explain whether works eligible for protection 
pursuant to the TRIPS Agreement/Berne Convention and meeting the criteria to qualify as a patent, 
trademark or copyright could be denied protecti on under the Intellectual Property Law on the grounds 
that they did not have economic value or contri bute to social development.  In reply, the 
representative said that this definition set out  Lao PDR's general policy vision to promote 
socio-economic development.  He added that this  provision was not intended to limit the rights of 
holders of Intellectual Property Rights.  The speci fic criteria to qualify for Intellectual Property Rights 
protection in accordance with the TRIPS Agreem ent/Berne Convention was provided for in the 
Intellectual Property Law (Sections III and V).   
- Responsible agencies for policy formulation and implementation 
158. The representative of Lao PDR said that the Department of Intellectual Property, 
Standardization and Metrology (DISM) in the National Authority for Science and Technology 
(NAST) had overall responsibility for the coordi nation of the implementation of policies on 
intellectual property.  The functions of the DISM in cluded preparation of legislation, the formulation 
of strategic development plans on intellectual prope rty, the establishment of a registration system, 
international co-operation, dissemination of inform ation, and receiving petitions and claims from the 
public and coordinating with other agencies to resolve them.  A copyright and related rights 
information section had been established under the Copyright Division of the DISM in 2009.  The section was, inter alia , responsible for drafting legislation for the management of copyright and  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 61 
 
 
  related rights, notification of information related to  copyright and related rights; and the establishment 
of a database.  The section also acted as a forum for receiving complaints and could perform 
mediation to address such complaints.  Lao PDR wa s also in the process of setting up a geographical 
indications information section under the Industr ial Property Division of the DISM by 2012.  
The Department of Legislation in the Ministry of  Justice provided advice in the preparation of new 
legislation and endorsed the bills before s ubmission to the National Assembly.  NAST would 
coordinate with other Ministries and provincial authorities depending on the subject matter, e.g. the 
Ministry of Industry and Commerce on trademarks a nd trade secrets, the Ministry of Agriculture and 
Forestry (plant varieties), and the Ministry of In formation and Culture (copyr ight and related rights) 
and other concerned ministries. 
159. The Customs Department at the Ministry of Finance was responsible for measures applied at 
the border to enforce intellectual property rights.  The Economic Police within the Ministry of Public 
Security enforced intellectual property rights within the country.     
- Participation in international intellectual property agreements 
160. The representative of Lao PDR said that Lao PD R had become a signatory to the convention 
establishing the World Intellectual Property Organi zation in 1995, acceded to the Paris Convention 
for the Protection of Industrial Property in 1 998, and the Patent Cooperation Treaty in 2006.  
Preparations were on-going to accede to the Bern e Convention for the Protection of Literary and 
Artistic Works (by the end 2011).  Decisions to acced e to the Rome Convention for the Protection of 
Performers, Producers of Phonograms, and Broadcas ting Organizations and the Washington Treaty on 
Intellectual Property in Respect of Integrated Circ uits had been deferred due to technical capacity 
limitations.  In 1996, Lao PDR had signed a tw o-year bilateral Agreement with Thailand on 
trademarks and other areas of intellectual property rights.  Lao PDR was participating in an ASEAN 
treaty on a common filing system for trademarks, industrial designs and in the area of copyright.   
161. Asked about Lao PDR's intenti ons regarding accession to the International Union for the 
Protection of Plant Varieties (UPOV), and urged to join the WIPO Copyright Treaty, the WIPO 
Performances and Phonograms Treaty, the Gene va Phonograms Convention, and the Brussels 
Convention Relating to the Distribution of Progr amme-Carrying Signals Tr ansmitted by Satellite, the 
representative of Lao PDR noted that the TRIPS Ag reement did not require accession to intellectual 
property treaties and conventions such as the UPOV.   His Government would nevertheless study the 
implications of acceding to the various Agreements.   WT/ACC/SPEC/LAO/4/Rev.1 
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  - Application of national and MF N treatment to foreign nationals 
162. The representative of Lao PD R stated that the 2007 Intellectual Property Law included 
provisions on MFN and national treatment (Articles 6 and 7) and ensured confor mity with Article 3 of 
the Berne Convention and Article 9 of the TRIPS Agreement.  He also confirmed that Lao PDR 
applied the principle of national treatment in acco rdance with the Paris Convention for the Protection 
of Industrial Property; and MFN treatment consistent  with other internationa l agreements to which 
Lao PDR was a party.  At present, any person with out lawful representation in Lao PDR was required 
to use an accredited representative in Lao PDR to f ile industrial property applications pursuant to 
Article 27 of the 2007 Intellectual Property Law.  The requirement was aimed at protecting the 
interest of the right holder and at facilitating th e right holder's communication with the competent 
State authorities. 
- Fees and taxes 
163. The representative of Lao PDR said that as Lao PDR was in the process of revising its 
existing intellectual property legislation to bring it in to conformity with the requirements set out in the 
TRIPS Agreement. The current fees and charges rela ted to trademarks, patents, petty patents and 
industrial designs are enumerated in Table 19.   
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights 
164. The representative of Lao PDR said that a new Intellectual Property Law - based on the 
WIPO model law and the requirements of the TR IPS Agreement - had entered into force in 
April 2008.  The Law included provisions on copyri ght and related rights, thereby protecting this 
subject matter for the first time in Lao PDR.  A Decree to implement the Intellectual Property Law 
would be adopted by the end of 2011 and a Regula tion on Copyright and Related Rights was expected 
by 2012.  His Government was also preparing to accede to the Berne Convention by the end of 2011.  
A copyright and related rights informati on section had been established in 2009.  
165. Having reviewed a draft of the Intellectual Prope rty Law, a Member had noted that the draft 
generally appeared to fall short of full complianc e with the requirements under the Berne Convention 
and the TRIPS Agreement, and specifically with respect  to the rights conferred, registration to receive 
protection, exceptions and exclusions, the non-inclus ion of scientific works and compilations of data,  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 63 
 
 
  and the definition of related rights.  Moreover, the draft law had not set forth the term of copyright 
protection for audio-visual works and sound recordin gs.  In reply, the representative of Lao PDR said 
that many of the points raised had been addressed  in the promulgated Law, including the term of 
protection (Articles 93 and 94), the objects of protection (Articles 74, 75, 77 and 78), the rights granted (Parts 4 and 5), the term of protecti on for audio-visual works and sound recordings 
(Article 94), the requirement to extend protectio n to scientific works and compilations of data 
(Article 74), and other requirements of the TRIPS Ag reement.  He added that  the Law did not require 
the registration of a copyright for protection, as works were protected automatically upon creation 
(Article 79).  However, the voluntary notifica tion of works was available in accordance with 
Decision No. 1028/PMO-NAST "On Notifying Informa tion on Copyright and Related Rights" of 
17 June 2009, by which owners of copyright and related rights could voluntarily notify their works 
with the NAST.  This could be useful as evidence in case of violations or disputes. 
166. On the 2007 Intellectual Property Law, a Member  noted that copyright protection was not 
extendable to ideas and requested Lao PDR to am end the Law (Articles 3.25 and 79) to ensure 
conformity with Article 9.2 of the TRIPS Agre ement.  Lao PDR was also requested to amend 
Articles 3.26, 78(3) and 78(4) of the Law to incl ude unencrypted broadcasts in the definition of 
related rights.  Noting that Article 78 of the Law a ppeared to provide protection for the related rights 
of Lao nationals, this Member as ked Lao PDR to explain how prot ection would be extended to the 
rights of foreign performers, producers of phonogr ams and broadcasting orga nizations (Article 78, 
1.2, 1.3, 2.2. and 3.2).  Lao PDR was also request ed to explain how it would address situations where 
the term of protection for copyright and related right s provided for in its Law wa s inconsistent with or 
differed from the term extended in an internationa l convention or agreement.  Lao PDR was further 
requested to include a more specific definition of the act of reproduction (Article 3.30).  A Member 
requested Lao PDR to further clarify the provi sion contained in paragraph 1 of Article 76. 
167. The representative of Lao PDR replied that the de finition of copyright e xplicitly referred to a 
"work", which was understood to be an expression creat ed by the author, in whatever mode, in the 
domains of art, literature or science.  The definiti on would be refined in the Decree Implementing the 
Intellectual Property Law and would explicitly clar ify that copyright protection did not extend to 
ideas.  Unencrypted broadcasts were, in his view, covered under the definition of broadcasting, and 
the rights of foreign performers and producers of  phonograms and broadcasting organizations would 
be protected by Lao PDR's participation as a contr acting party to international conventions.  He said 
that in case the term of protection in the Intellect ual Property Law was inconsistent with the term 
accorded in an international convention or agreemen t to which Lao PDR was a contracting party, then 
the term of protection of that international conven tion or agreement would prevail.  In response to WT/ACC/SPEC/LAO/4/Rev.1 
Page 64  
 
  certain specific questions, he said that the Inte llectual Property Law included provisions stipulating 
that use of protected intellectual property by a th ird party, whether for commercial or non-commercial 
purposes, must be with the authorization of the right holder.  In the event of a conflict of interest, the 
parties could avail of the dispute resolution provisi ons of the Law (Section VIII) or seek remedy in the 
courts.    
168. Asked to clarify which "works" of "traditiona l art and literature" w ould be eligible for 
copyright protection and whether collective ownershi p of such works was permitted, he said that the 
collective ownership of copyright for traditiona l cultural expressions w as permitted in Lao PDR 
(Articles 83 and 87 of the Intellectual Property La w).  The collective ownership of copyright for 
traditional cultural expressions aimed at the preser vation of traditional values and moral rights.  
The local community would be considered the "author " of such works.  Traditional art and literature 
were (local or group) traditional compilations of cr eations revealing the way of life of the community, 
the performance was culturally and socially consis tent and transmitted ora lly through generations, 
copied or made similar such as local stories, poe ms, maxims, or proverbs; local songs, dances, or 
music; traditional dance, games, rites and competiti ons; or musical instruments, paintings, drawings, 
sculptures, architectural designs having been created using local materials and equipment.  Individuals 
or entities using works of traditional art and literature  were required to protect the source of the 
traditional performance and preserve its original valu es.  The protection involved moral rights and not 
commercial rights.  Their term of protection had no t been determined.  He further added that the 
Decree Implementing the Intellectual Property Law and other relevant regul ations on Intellectual 
Property were expected to further elaborate the colle ctive ownership of such works.  These laws were 
envisaged to be adopted in 2011 and 2013,  respectively (see timeline in the revised 
TRIPS Action Plan in document WT/ACC/LAO/15/Rev.4) .  As for limitations on copyright subject to 
compensation (Articles 95 and 97), individuals or  entities "broadcasting programs with sponsorship" 
would not be liable for obtaining permission from the copyright owner for using published works, but 
would be liable to paying royalties or remunerati on as agreed to the authors, copyright owners, 
performers, or broadcasting organizatio ns for sound/video recordings.   
169. Lao PDR was also requested to further refine th e definition of "data compilation" (Article 86).  
A Member noted that the 2007 Intellectual Property Law granted performers the right to record and 
reproduce live performances of the performer onto audi o-visual discs (Articles 89(3) and 89(4)), this 
provision appeared to be more limited than the corresponding provision provided for in the 
TRIPS Agreement, Lao PDR was therefore requested  to amend its 2007 Intellectual Property Law to 
ensure full compliance with Article 14(1) of the TRIPS Agreement.  A Member requested further 
clarification as to who would be considered an i nvestor under the 2007 Intellectual Property Law, the  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 65 
 
 
  representative of Lao PDR replied that under Article 92 of the Law, an individual or entity providing 
the funds for the performance was cons idered as an "investor".  He added that the definition would be 
further refined in the Decree Implementing the Inte llectual Property Law.  Regarding the term of 
protection of a work (Article 93(2)), Lao PDR was requested to bring the Law into compliance with 
Article 12 of the TRIPS Agreement.  Article 12 of the TRIPS Agreement provided for a term of 
protection of the copyright, namely 50 years from the end of the calendar year of authorized 
publication, or, failing such authorized publication, 50 years from the end of the calendar year of the 
making.  Lao PDR was further requested to bring its Articles 94(1) and 94(2) of the Law into compliance with the term of protection ava ilable to performers and producers of phonograms 
according to Article 14(5) of the TRIPS Agreement.  A Member sought further clarification as to how 
the limitations provided for in Articles 96, 97 a nd 98 were consistent with Article 13 of the 
TRIPS Agreement and requested Lao PDR to br ing these provisions into compliance with the 
TRIPS Agreement.  The representative of Lao PDR noted that Members' proposals would be taken 
account of in the revised IP legislation (see timelin e in the revised TRIPS Action Plan in document 
WT/ACC/LAO/15/Rev.4). 
- Trademarks, including service marks 
170. The representative of Lao PDR said that tradem arks were protected pursuant to the Prime 
Minister's Decree No. 06/PM "On Trademarks" of 18 January 1995, Regulation No. 466/STEA-PMO 
"On the Registration of Trademarks" of 7 Marc h 2002, and the 2007 Intellectual Property Law.  
The 2007 Intellectual Property Law superseded pr ovisions contained in Prime Minister's Decree 
No. 06/PM and Regulation No. 466/STEA-PMO wher e provisions were incompatible with the 
2007 Intellectual Property Law.  A trademark was defi ned as a mark (i.e. any sign, which could be an 
image, word, letter, number, signature, name, col our, form or shape of an item, or combination 
thereof) which could be used to distinguish a good or service from others.  Applications for 
registration of a trademark were to be filed with the Department of Intellectual Property, 
Standardization and Metrology (DISM) in the NAST.  The Department processed the application, entered the approved trademark in a national register , and issued a trademark registration certificate.  
The registered mark was published in the Official Gazette of the NAST.  The normal timeframe 
between application and the granting of a certificate was six months or less.  The term of protection 
for a registered trademark was ten years, renewable indefinitely for successive periods of ten years.  Applications for renewal should be filed six months prior to expiry.  A trademark registration could be 
cancelled for non-use during a continuous period of fi ve years, unless it could be demonstrated that 
special circumstances had prevented the use of the trademark.   WT/ACC/SPEC/LAO/4/Rev.1 
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  171. Excluded from registration were trademarks that  were (i) not clear and did not identify any 
product or service; (ii) contrary to national culture, mo rals or public order; (iii) misleading or likely to 
mislead, in particular with respect to geographical origin, nature or character istics; (iv) forged or 
copied; (v) comprising symbols such as national seals, flags or emblems, or other symbols closely identified with a nation's culture or  heritage; (vi) comprising names or bearing the official seals of 
countries or governments, international organizations , or organizations established by treaties; or 
(vii) if the mark was identical with - or confusingl y similar to - trademarks or trade names of goods or 
services which were widely "well-known".   
172. The owner of a trademark already registered abroad had the right to claim priority when filing 
for registration in Lao PDR.  Registration for pr otection of a trademark was not compulsory in 
Lao PDR, but the rights of the owner or his/her c onsent could only be recognized if a trademark had 
been registered.  Owners of registered trademarks ha d the exclusive right to use the trademarks, or to 
authorize others to use them.  He noted that the 2007 Intellectual Property Law (Articles 112 to 118) provided for general administrative and judicial reme dies to owners of registered trademarks against 
any infringement of such trademarks.    
173. Responding to specific questions and comments, he acknowledged that Article 12 of the 1995 
Decree made no reference to marks identical or confus ingly similar to marks that were the subject of 
registration or pending applications (but not well-kn own).  Decree No. 06/PM would also need to be 
amended to ensure full compliance with Article 15. 5 of the TRIPS Agreement regarding the provision 
of reasonable opportunity for petitions to cancel a regi stration.  He added that Articles 16, 23 and 45 
of the 2007 Intellectual Property Law incorporated  the rights conferred to the trademark owner by 
virtue of Article 16.1 of the TRIPS Agreement to prevent the use of "similar signs" and to presume 
confusion where an identical mark was used without authorization.  Registration of trademarks that 
were the same as, or similar to, trademarks of any goods (or services) already registered would be 
denied, even if used on goods not similar to the goods associated with the registered mark, unless the 
new registration was sought by the owner of the re gistered mark.  The 2007 Intellectual Property Law 
would be supplemented by an implementing decree to  preserve the exclusive and prior rights of an 
owner and to cover examination of a pplications for a trademark and cancellation of a registered mark.     
- Geographical indications, including appellations of origin 
174. Having reviewed a draft of the Intellectual Prope rty Law, a Member noted that the provisions 
relating to geographical indications (GIs) were limited to definition and duration.  A Member further 
requested additional information on how Lao PDR intended to provide prot ection for geographical 
indications, including additional protection for GI s for wines and spirits, and addressing situations  WT/ACC/SPEC/LAO/4/Rev.1 
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  where the owner of an earlier protected trademar k would be able to prevent the protection or 
registration of a confusingly similar and later-i n-time geographical indication in accordance with 
Articles 16.1 and 24.5 of the TRIPS Agreement. 
175. The representative of Lao PDR replied that provisions for the protection of geographical 
indications had been included in the Intellect ual Property Law No. 08/NA of 24 December 2007.  
Article 19 of the Law established the requirements fo r the protection of a geographical indication.  
The term of protection of a regist ered geographical indication was perm anent, but third parties had the 
right to seek cancellation of a GI registration, if the registration had been made in bad faith as per 
Articles 57, 115, 116 and 117 of the Intellectual Pr operty Law.  Detailed provisions, in line with 
Articles 16.1 and 24.5 of the TRIPS Agreement, w ould be included in the Decree Implementing the 
Intellectual Property Law.  Lao PDR had set up a committee to supervise a project on the 
establishment of potential geographical indications under the Ministry of Agriculture and Forestry in 
2007, and established a geographical indications registration unit under the DISM in 2009. 
176. A Member noted that, for the definition of GIs, Article 3.17 and the last paragraph of 
Article 19 of the Intellectual Property Law needed to  be read in conjunction.  The Member therefore 
suggested Lao PDR to provide the complete definition in  Article 3.17 in order to avoid any confusion.  
The representative of Lao PDR took note of this co mment and would consider  this suggestion when 
revising the Law. 
177. In response to specific questions on the Law and the draft implementing decree regarding the 
possible co-existence of protected geographical indi cations and trademarks and on the safeguards in 
place to ensure compliance with Article 16 of th e TRIPS Agreement, the representative of Lao PDR 
said that a geographical indication could not be register ed if the indication was "identical or similar to 
protected trademarks that lead to misunderstanding as  to the origin of the said goods" (Article 25.3 of 
the Intellectual Property Law).  The geographical indi cation, however, could be registered if its use 
would not mislead the consumer.  Article 100 (par agraph 1.6) barred the owner of a geographical 
indication from preventing the use of the same or  similar trademark where the trademark acquired 
protection before the date of filing of a registra tion application for the geographical indication.  
He added that the Decree Implementing the In tellectual Property Law would not prejudice the 
eligibility for or the validity of the registration of a trademark, or the right to use a trademark, on the 
basis of such trademark is identical with or si milar to a geographical indication, in cases when the 
trademark was registered in good faith (i) before the date of entry into force of the Law on Intellectual 
Property Rights; or (ii) before the geographical in dication was protected in its country of origin.  
Foreign geographical indications that were not pr otected in the foreign jurisdiction could not be WT/ACC/SPEC/LAO/4/Rev.1 
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  registered in Lao PDR.  He added that comments with regard to WTO jurisprudence (WT/DS/174/R) 
and the safeguards for compliance with Articles 16 and 17 of the TRIPS Agreement would be taken 
into account in developing the Decree Implementing th e Intellectual Property Law.  He stated that the 
Implementing Decree had been prepared by the National Authority for Science and Technology and 
was currently under review.  Lao PDR intended to  submit the Implementing Decree to the Working 
Party before the end of 2011.  He further confir med that the Implementing Decree would incorporate 
a provision to allow owners of a registered trademark or third parties to object the registration of a 
geographical indication.    
- Industrial designs 
178. The representative of Lao PDR said that Article 29 of Decree No. 01/PM "On the Protection 
of Patents, Petty Patents (Utility Models) and Industrial Designs" of 17 January 2002 provided 
protection for new industrial designs.  The Decr ee covered the protection of textile designs 
(Article 32), but did not distinguish new from origin al designs.  Provisions on industrial designs had 
also been included in the 2007 Intellectual Pr operty Law.  The 2007 Intellectual Property Law 
superseded provisions of the Decree where they were  incompatible with the 2007 Intellectual Property 
Law.  
179. Having reviewed the draft Law, which appeared to be restating provisions in 
Decree No. 01/PM, a Member noted that Lao PDR woul d seem to be protecting industrial designs for 
five years, less than the ten-year term of pr otection provided for under the TRIPS Agreement.  
In reply, the representative of Lao PDR said that in accordance with Article 48 of the Intellectual 
Property Law, the term of protection for industrial designs was 15 years, from the date of filing the application.  Application procedures for the regist ration of industrial designs were provided for in 
Section III of the Intellectual Property Law.   
- Patents 
180. The representative of Lao PDR said that patents we re granted for inventions considered new, 
involving an inventive step, and industrially applicable pursuant to Decree No. 01/PM "On the Protection of Patents, Petty Patents (Utility Mode ls) and Industrial Designs " of 17 January 2002, 
Regulation No. 322/STEA-PMO of 18 February 200 3, and the 2007 Intellectual Property Law.  
He noted that the 2007 Intellectual Property Law su perseded the provisions of Decree No. 01/PM and 
Regulation No. 322/STEA-PMO, which were incompatib le with the 2007 Intellectual Property Law.  
In accordance with Article 21 of the 2007 Intellectua l Property Law, discoveries; scientific theories 
and mathematical methods; schemes, rules or me thods for doing business; the performance of pure  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 69 
 
 
  mental acts or playing games; methods for th e treatment of the human body or animals; and 
inventions contrary to public or der or national cultural morality were not recognized as patentable 
subject matter.  He noted that this provision was in  line with Article 27.2 of the TRIPS Agreement.  
In response to a specific question, he confirmed th at non-biological or microbiological processes were 
eligible for patent protection.  He added that fu rther clarification would be provided in the Decree 
Implementing the Intellectual Property Law.  The term  of protection for a patent was 20 years without 
renewal (ten years for a petty patent with a possible extension of two years).  The requirements of 
Article 29 of the TRIPS Agreement - conditions on pate nt applicants - were covered by Article 30 of 
the 2007 Intellectual Property Law.   
181. The rights conferred to the patent owner - in cluding the right to assign, transfer by succession 
and to conclude licensing contracts - were pr ovided through Articles 45, 101 and 108 of the 
Intellectual Property Law and were, in his opin ion, in conformity with Article 28 of the 
TRIPS Agreement.  Exceptions to the exclusive ri ghts conferred by a patent were laid down in 
Articles 53 and 54 of the Law.  Responding to a comme nt that earlier provisions had appeared to be 
attempting to provide for a compulsory licence wh ere the provisions of Article 5(A)(4) of the 
Paris Convention applied, although this was not clea r from the text, he said that Article 54 of the 
2007 Law related to non-use or insufficient exploita tion of a patented invention for three years after 
the patent had been granted.   
182. The representative of Lao PDR said that Article 53 of the Intellectual Property Law 
concerned compulsory licensing of the use of patent s or petty patents in cases of national emergency 
or urgent need - for non-commercial purposes.  The permit would determine the limitations on use 
and stipulate the compensation to the right owner.  The owner could challenge the issue of the licence 
and the compensation offered within 60 days.  Hence, such compulsory licence would be non-exclusive and define the scope, function, time lim it, adequate compensation, and the condition of 
payment as provided for in the Paris Convention.   
183. The representative of Lao PDR added that some aspects of the TRIPS Agreement relating to 
patents had been addressed further in the Civil Procedure Law (Articles 3 and 20), in particular, 
regarding the opportunity for judicial review of d ecisions to revoke or forfeit a patent (Article 32 of 
the TRIPS Agreement), the conditions for provi ding limited exceptions to the rights conferred 
(Article 30 of the TRIPS Agreement), and to allow re versal of the burden of proof in process patent 
infringement actions in the instances foreseen in Article 34 of the TRIPS Agreement.   WT/ACC/SPEC/LAO/4/Rev.1 
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  - Plant variety protection 
184. The representative of Lao PDR said that provi sions on plant variety protection had been 
included in Section IV of the 2007 Intellectual Property Law.  The requirements for a new plant 
variety to be protected were novelty, distinctness, uniformity, stability and denomination.  The term of 
protection of new plant varieties was 25 years for trees and 15 years for plants.   
185. Asked whether Lao PDR would consider becoming a UPOV member, the representative of 
Lao PDR said that Lao PDR would focus its limited capacities on implementing TRIPS requirements, 
as it understood that the TRIPS Agreement did not re quire membership of the UPOV Convention.   
- Layout designs of integrated circuits 
186. The representative of Lao PDR said that protection of layout designs (topographies) of 
integrated circuits were provided for in Sections III, IV, VI and VII of the 2007 Intellectual Property 
Law.  He noted that further detailed provisions would be included in the Implementing Decree.  
The term of protection of layout designs (topogra phies) of integrated circuits was 12 years.  
A decision to accede to the Washington Treaty on In tellectual Property in Respect of Integrated 
Circuits had been deferred due to technical capacity limitations.   
- Requirements on undisclosed information,  including trade secrets and test data 
187. The representative of Lao PDR said that Article  104 of the Criminal La w contained a general 
provision making any person disclosing confidential matters having come to his/her knowledge in the 
performance of his/her profession or duty, and thereby causing damage to the owner of the 
confidential information, liable to imprisonment of three to six months and a fine ranging from 
KN 50,000 to KN 500,000.   
188. Provisions providing protection for undisclosed in formation or trade secrets were contained in 
Articles 20, 100(2), 101, 107 and 111.5 of the 200 7 Intellectual Property Law.  Lao PDR would 
develop more specific legislation on the protec tion of undisclosed information in line with 
Article 39.2 and 39.3 of the TRIPS Agreement, notably in the Implementing Decree.   
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS 
189. The representative of Lao PDR said that measures to control abuse of intellectual property 
rights had been included in Decree No. 01/PM "O n the Protection of Patents, Petty Patents 
(Utility Models) and Industrial Designs" (Articles 20 and 21), Decree No. 06/PM "On Trademarks",  WT/ACC/SPEC/LAO/4/Rev.1 
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  and Decree No. 15/PM "On Trade Competition".  He  noted that the 2007 Intellectual Property Law 
superseded the provisions contained in Decree s No. 01/PM, No. 06/PM and No. 15/PM in cases 
where they were incompatible with the 2007 Inte llectual Property Law.  Provisions to control 
anti-competitive practices had also been included in Articles 54 to 57 and 111 of the 2007 Intellectual 
Property Law and would be further elaborated in the Implementing Decree.   
- ENFORCEMENT 
190. The representative of Lao PDR said that, in add ition to the existing legislation on intellectual 
property protection (industrial property; copyright a nd related rights), provisions relevant to the 
enforcement of IPRs could be found in the Civil Procedure Law No. 02/NA of 17 May 2004, the Criminal Procedure Law No. 01/NA of 15 May 20 04, the Penal Code Law, the Law No. 03/NA 
"On Judgement Enforcement" of 15 May 2004, the Law "On the People's Courts", and the Customs 
Law No. 05/NA of 20 May 2005.  Ri ght holders could opt for administrative measures or civil or 
criminal procedures to protect their rights, and any decision of the trial court could be appealed to a 
higher court.  So far, one IPR case had been filed for resolution in the court.  He added that the 
enforcement procedures and remedies were being strengthened through the 2007 Intellectual Property 
Law and its implementing decree and regulations.  He further added that a Ministerial Instruction on 
Customs Protection of Intellectual Property would be issued by the end of 2011 to provide for border 
measures that were in compliance with Section 4 of the TRIPS Agreement.  
- Civil judicial procedures and remedies 
191. The representative of Lao PDR said that right hol ders could evoke civil judicial procedures 
pursuant to the 2007 Intellectual Property Law (Article 117) and the Civil Procedure Law 
(Articles 78, 83, 92 and 93).  A judge could order th e production of evidence to substantiate a party's 
claims according to Article 20 of the Civil Pro cedure Law, and Article 76 of the Law provided for 
additional remedies including the seizure and destruction of infringing goods, materials and 
implements.  In addition, provisions on civil judi cial procedures and remedies would be included in 
the implementing decree and regulations to the 2007 Intellectual Property Law.   
192. A Member previously noted that certain re quirements of the TRIPS Agreement were not 
clearly reflected in the existing legislation.  In reply, the representative of Lao PDR, however, stated 
that certain requirements had been reflected, namely :  the ability of a judge to enjoin a defendant from 
infringing intellectual property rights (Article 71 of Civil Procedure Law No. 02/NA, dated 
17 May 2004); order the payment of adequate da mages (Articles 83, 91 and 101 of Law No. 01/NA 
"On Contract and Tort", dated 8 D ecember 2008); allow the right holder to recover enforcement costs, WT/ACC/SPEC/LAO/4/Rev.1 
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  lost profits and/or statutory damages (Ar ticles 26 and 33 of Court Fee Law No. 07/NA, 
dated 27 December 2006 and Article 35 of Ju dgment Enforcement Law No. 04/NA, dated 
25 July 2008); indemnification of the defendant, in cluding attorney's fees, in the event of litigation 
abuse by plaintiffs; and ensuring that administra tive remedies would conform to these principles.  
He further noted that provisions exempting public  authorities and officials from liability in connection 
with the administration of IP laws where actions we re taken or intended in good faith and within the 
scope of their authority were contained in Article  83 of Law No. 1/NA "On Contract and Tort", dated 
8 December 2008.  These issues would be further cons idered, and provisions would be elaborated in 
the Implementing Decree and regulations to the 2007 Intellectual Property Law. 
- Provisional measures 
193. The representative of Lao PDR stated that judges could grant temporary restraining orders 
and provisional relief to prevent infringement a nd to preserve evidence according to Articles 76 and 
119 of the Civil Procedure Law (for civil cases) and Articles 59 to 68 of the Criminal Procedure Law (for criminal cases).  The customs authority ha d the right to inspect and seize infringing goods 
(Article 76.10 of the Customs Law and Article 124 of  the 2007 Intellectual Property Law).  He further 
noted that Article 76.10 of the Customs Law a nd Article 124 of the 2007 Intellectual Property Law 
were being revised by the Ministry of Finance under a Ministerial Instruction on Customs Protection of Intellectual Property (which was expected to be  issued by the end of 2011) to comply with 
Section 4 of the TRIPS Agreement.  Asked about in demnification of the defending party in case of 
unjustified provisional relief, he sai d that Articles 83, 91 and 101 of the Law No. 01/NA "On Contract 
and Tort", dated 8 December 2008, allowed defendants to  protect their rights and legitimate interests.   
- Administrative procedures and remedies 
194. The representative of Lao PDR said that administrative procedures and remedies had been 
established pursuant to the Decree "On Trademarks", the Decree "On the Protection of Patents, Petty 
Patents (Utility Models) and Industr ial Designs", the 2007 Intellectua l Property Law, and the Petition 
Handling Law No. 07/NA, dated 9 November 2005.  The procedures would be elaborated further in the implementing decree and regulations of the Law.  
195. Administrative officials had the authority to issu e injunctions to order a party to desist from 
an infringement and to prevent infringing goods  from entering the channels of commerce.  
For example regarding trademarks, the Department  of Intellectual Property, Standardization and 
Metrology could issue a warning by administrative procedure to individuals and legal entities using 
trademarks without the consent of the owner or otherwise pursuing the use of trademarks  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 73 
 
 
  illegitimately.  The DISM would invite the parties concerned to discuss the alleged violation and find 
a mutually agreeable solution (acceptable also to DISM).  If no Agreement was reached, the matter 
could be referred to the Economic Arbitration Office under the Ministry of Justice or to the courts.   
196. He added that Lao PDR had a tradition to se ttle trademark disputes through administrative 
channels.  Eight cases involving claims of trademark infringement had been settled thus far; seven of 
them through DISM, and one case by the Economic  Arbitration Office.  Although the settlements 
needed to be "certified" by a court to be lega lly enforceable, he considered the administrative 
procedure generally effective.  He stressed that  the complainant could bring an infringement case 
directly before a court and was not required to invoke the administrative procedure.   
- Special border measures 
197. The representative of Lao PDR said that th e 2005 Customs Law and its implementing 
Decree No. 362/PM included provisions for intell ectual property rights protection at the border.  
Right holders would request the Department of In tellectual Property, Standardization and Metrology 
in the NAST to take action, and the Department coordinated with the Customs Department in the 
application of border measures.  Pursuant to Article 76.10 of the Customs Law, the customs 
authorities could inspect and seize infringing goods.   
198. In response to specific questions on whethe r the Customs Law and Decree No. 362/PM 
allowed for inspection and seizure of both impor ted and exported infringing goods, suspended the  
release of counterfeit or pirated goods, and whether further provisions were being contemplated, he 
noted that provisions on special border measures had also been included in Article 124 of the 2007 
Intellectual Property Law which authorized border officials to inspect, seize and impound infringing imported or exported goods.  Articles 129 through 135 of the Intellectual Property Law elaborated the 
applicable sanctions.  Provisions  covering Articles 51 through 60 of the TRIPS Agreement would be 
taken into account in implementing regulations of  the Customs Law and in the Decree Implementing 
the Intellectual Property Law by the end of 2011.  He  further added that a Ministerial Instruction on 
Customs Protection of Intellectual Property woul d be issued by the end of 2011 to provide border 
measures in compliance with Section 4 of the TRIPS Agreement.   
- Criminal procedures 
199. The representative of Lao PDR said that 2007 Intellectual Property Law and 2007 Criminal 
Law allowed recourse to criminal proceedings in case of infringement of intellectual property rights in WT/ACC/SPEC/LAO/4/Rev.1 
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  accordance with Criminal Procedure Law.  Penalties were stipulated in the 2007 Intellectual Property 
Law and in the 2007 Criminal Law. 
200. Asked to explain how existing legislation complie d with Article 61 of the TRIPS Agreement, 
he added that the 2007 Intellectual Property La w (Article 134) and its implementing decree and 
regulations would also include sanctions against infringement of all intellectual property rights.  
Penalties were foreseen in the form of imprisonm ent ranging from three months to two years, and 
fines between KN 0.5 million and KN 5 million.   
VI. POLICIES AFFECTING TRADE IN SERVICES 
201. The representative of Lao PDR said that servi ces accounted for a quarter of all trade and 
around 26 per cent of Lao PDR's GDP in 2009.  The public sector had traditionally been the principal 
services supplier.  The main services sectors we re wholesale and retail trade, followed by 
transportation, storage, communication and financia l services.  Tourism was an important source of 
export revenue. But with market-oriented reforms and privatization the private sector was gaining 
prominence in services sectors, such as: computer, courier, telecoms, construction, distribution, education, environment, insurance,  banking and tourism.  He added that services exports had grown at 
about 6.6 per cent annually since 1990 while the grow th in services exports was largely triggered due 
to a significant expansion in the tourism industry.  He noted that there was currently no data available 
to assess the growth of the specific services sectors.  Public suppliers continued to dominate the following services sectors:  hospitals, water supplies,  electricity distribution, and postal services.  
202. Legislative developments had been made in va rious sectors, including:  the adoption of the 
Law on Postal (2004); the Law on Tourism (2005); the Law on Civil Aviation (2005); the Law on Health Care (2005); the Law on Accounti ng (2007 Amendment); the Law on Education 
(2007 Amendment); the Law on Media (2008); the Law on Water Supply (2009); and, the Law on Construction (2008).  The legal framework and the regulatory capacity for several service sections, 
such as telecommunication, insurance and banking , were still being developed.  Ministries and 
agencies responsible for services included the Mini stries of Planning and Investment; Public Works 
and Transport; Justice; Finance; Health; Educat ion; Information and Cu lture; Agriculture and 
Forestry; Industry and Commerce; Energy and Mini ng; and Labour and Social Welfare; the Bank of 
Lao PDR; the National Authority for Science a nd Technology; the Water Resources and Environment 
Administration; the National Tourism Administ ration; and the National Sports Committee.  
The Ministry of Planning and Investment c oordinated services negotiations under the ASEAN 
Framework Agreement on Services, whereas the Mi nistry of Industry and Commerce had overall 
responsibility for trade in services is sues as they arose in the WTO.  Following the adoption of Decree  WT/ACC/SPEC/LAO/4/Rev.1 
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  No. 363/PM on the Notification and Enquiry of Tr ade Related Information, dated 19 August 2010, 
and Decision No. 0349/MOIC.FTPD on the GATS E nquiry Point, dated 22 February 2011, his 
Authorities established the GATS Enquiry Point in the Foreign Trade Policy Department of the 
Ministry of Industry and Commerce.  Lao PDR submitted a copy of the legislation to the Working Party.  The GATS Enquiry Point could be contacted at: 
Foreign Trade Policy Department 
Ministry of Industry and Commerce PO Box 4107, Vientiane Capital, Lao PDR 
Tel:   +85621-450065 
Fax:   +85621-450066 
Website: www.laoftpd.com 
203. He noted that investment in service sectors were  governed by the new investment legislation, 
i.e. Law No. 02/NA "On Investment Promotion" and its Implementing Decree.  The Business Law 
No. 03/94/NA of 18 July 1994, which had reser ved certain activities for Lao nationals, notably 
services incidental to forestry or manufacturing, retail services, clerical or secretarial services, tourist guides, road transport services, teaching the Lao language, security guard services, building cleaning 
services and postal services had been replac ed by the Enterprise Law No. 11/NA of 
9 November 2005, which aimed at providing foreign and domestic investors an opportunity to 
conduct businesses on an equal footing and retained only certain restrictions related to cultural 
sensitivity, for example, tourist guides. Howeve r, the Land Law No. 04/NA of 21 October 2003 
stipulated that foreign nationals or juridical persons were not entitled to  own land but could own 
premises or lease land.  Pursuant to the Labour La w No. 06/NA, foreign investors were encouraged to 
give priority to Lao nationals in recruitment.  Foreign employees should be no more than 10 per cent 
of the unskilled workforce or 20 per cent of th e skilled employees, and enterprises were urged to 
upgrade the skills of local employees.  
204. Foreign investors could also open representative offices or branches (Article 48 of Law 
No. 02/NA "On Investment Promotion").  This, however, did not obviate the standard registration 
requirements in accordance with applicable laws and regulations.   
205. In legal services, foreign nationa ls could provide advisory services as legal consultants, but 
could not represent clients directly in the court.  According to Article 13 of the Prime Minister's 
Decree No. 64/PM of 21 February 1996, membership in the Lao Bar Association was necessary to 
practice law in a court.  However, membersh ip in the Lao Bar Association was limited to 
Lao nationals.   WT/ACC/SPEC/LAO/4/Rev.1 
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  206. Lao PDR was preparing for the mutual rec ognition of professional qualifications in the 
framework of a Mutual Recognition Arrangement  (MRA) with other members of ASEAN.  
Seven MRAs had been concluded by December 2009 in accountancy services, architectural services, 
engineering services, nursing services, medical pr actitioners, dental practitioners, and surveying 
qualifications. 
207. The banking system was under the supervision of BOL and regulated by Law No. 03/NA 
"On Commercial Banks" and the Implementing Decree No. 275/PM.  The securities market was in 
process of being established.  Law No. 11/90/ NA "On Insurance" and its implementing decree 
governed the insurance sector.  The insurance ma rket remained narrow wh ereby most insurance 
coverage applied to non-life insurance products a nd only a small proportion of the Lao population had 
insurance coverage.  A monopoly on insurance servi ces granted to Assurances Généerales du Laos, a 
joint venture with 51 per cent forei gn ownership, had expired in 2002. 
208. Although some natural monopolies existed, particularly in the supply of public services, a 
number of sectors had been opened to competition, including telecommunication, banking, insurance, 
air and road transport, water supply, and hospital services sectors.  La Poste du Lao had retained a 
monopoly on the supply of postal services related to  postal savings, national defence and national 
security, but all other postal services, including co urier services, were open to competition.   
209. The Telecommunications Act No. 02/NA of 10 April 2001 provided the legal framework for 
telecommunication services.  The National Author ity for Post and Telecoms provided regulatory 
oversight for this sector.  Domestic and interna tional fixed line telephone services were no longer a 
monopoly for the Lao Telecommunications Company,  a joint venture with 49 per cent foreign 
ownership.  Five companies provided mobile telephony services, and there were no specific 
limitations on operators of e nhanced and value-added services, including internet services.   
[Lao PDR submitted an initial offer on specific comm itments in services in October 2007 (document 
WT/ACC/SPEC/LAO/3) and revised offers in June 2008, June 2009, and July 2010 (document 
WT/ACC/SPEC/LAO/3/Rev.3)] 
VII. TRANSPARENCY - Publication of information on trade 210. The representative of Lao PDR said that Decr ee No. 363 "On the Notification and Enquiry of 
Trade-Related Information" of 19 August 2010 in cluded provisions for prior comment and public 
review of proposed SPS and TBT regulations and legisl ation.  He also noted that public consultations  WT/ACC/SPEC/LAO/4/Rev.1 
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  with stakeholders were required fo r adopting laws - particularly tho se relating to many parties and the 
vital interests of the Lao people - pursuant to Artic le 37 of the Presidential Ordinance No. 02/OPR of 
20 October 2003 "On Legal Act Making".  The Ordina nce also provided for the publication of laws 
and regulations in the Official Gazette and/or  dissemination through mass media.  A Member 
encouraged Lao PDR to consider enacting a broade r regulatory review process, to foster greater 
overall transparency.   
- Notifications 
[to be completed] 
VIII. TRADE AGREEMENTS 
211. The representative of Lao PDR said that Lao PDR had joined ASEAN and the ASEAN Free 
Trade Area (AFTA) in 1997.  By implementing the AFTA Common Effective Preferential Tariff 
scheme, duties on imports into Lao PDR from other ASEAN members would set to fall to zero, or 
maximum 5 per cent, on nearly 99 per cent of the tariff line items (8,300 lines).  For goods on the "Sensitive List" (203 tariff lines), Lao PDR would el iminate the duties by 2015, or in some cases 
by 2018.  Lao PDR had included 464 tariff line items on the "General Exemption List", thus excluded 
from any reduction commitment.  He estimated that  about 60 per cent of Lao PDR's imports would be 
covered when AFTA had been fully implemented.   Lao PDR was also a member of the ASEAN 
Framework Agreement on Services and the ASEAN Investment Area Agreement.  Negotiations for Free Trade Agreements with ASEAN dialogue partners (China , Japan, Korea, as well as Australia and 
New Zealand under the umbrella of the Closer  Economic Relations (CER) Agreement) were 
underway.  
212. Lao PDR had signed bilateral tr ade and economic cooperation ag reements with Argentina, 
Belarus, Cambodia, China, the European Union,  India, Kuwait, Malaysia, Mongolia, Myanmar, 
Democratic People's Republic of Korea, the Russian  Federation, Thailand, Turkey, the United States, 
and Viet Nam.  Lao PDR was also a party to the Asia Pacific Trade Agreement, together with 
Bangladesh, China, India, Republic of Korea, a nd Sri Lanka.  Lao PDR be nefited from preferential 
access under the General System of Preferences acco rded to LDCs by both developed and developing 
countries.   
CONCLUSIONS 
[to be completed] WT/ACC/SPEC/LAO/4/Rev.1 
Page 78  
 
  ANNEX 
Laws, Regulations and Other Information Pr ovided to the Working Party of Lao PDR
 
- Law No. 5/95/NA "On the Bank of the Lao PDR" of 14 October 1995; 
- Decree No. 95/PM "On the Bank of Lao" of 22 June 1993; - Regulation No. 02/BOL "On Commercial Banks and Financial Institutions' Capital Adequacy 
Under Supervision by the Bank of the Lao PDR" of 15 January 1996; 
- Regulation No. 04/BOL "On Protecting Soundn ess Practices of the Commercial Banks and 
Financial Institutions which are Under the S upervision of the Bank of the Lao PDR" of 
15 January 1996; 
- Additional Instruction No. 01/BOL "On Implemen tation of Some Articles of the Instruction 
No. 02/BOL of 29 September 2003" of 5 February 2004; 
- Regulations No. 08/BOL "On Foreign Currency Exposure" of 7 May 1996; 
- Decree No. 53/PCM "On the Management of Foreign Exchange and Precious Metals" of 
7 September 1990; 
- Presidential Decree Law No. 01/P "Governing the Management of Foreign Exchange and 
Precious Metals", dated 17 March 2008; 
- Instruction No. 01/BOL "On Implementation of  Decree Law on Management of Foreign 
Currency and Precious Metals", dated 2 April 2010; 
- Law No. 02/NA "On Investment Promotion" of 8 July 2009; - Law No. 11/NA "On the Promotion of Foreign Investment" of 22 October 2004; - Decree No. 301/PM "Regarding the Implementation of the Law on the Promotion of Foreign 
Investment" of 12 October 2005; 
- Law No. 1/94 "On the Promotion and Management of Foreign Investment in the Lao PDR" of 
14 March 1994; 
- Decree No. 46/PM "On the Implementation of the Law on the Promotion and Management of 
Foreign Investment in the Lao PDR" of 23 March 2001; 
- Decision No. 013/CPC "On the Rules for Cons ideration Approval of Foreign Investment 
Project in the Lao PDR" of 27 February 2002; 
- Law No. 10/NA "On the Promotion of Domestic Investment" of 22 October 2004; - Domestic Investment Promotion Law No 03/95/NA of 14 October 1995; - Resolution No.3/NA "Approving the Dom estic Investment Promotion Law" of 
14 October 1995; 
- Decree No. 27/PM "On Domestic Investment Promotion" of 26 October 1995; 
- Contract and Tort Law No. 01/NA, dated 8 December 2008;   - Law No. 04/97/NA "Mining Law" of 12 April 1997; - Prime Minister's Order No. 18/PM "On Forest ry Management Policy for the Year 2002-2003" 
of 4 October 2002; 
- Notification No. 11/PM "On the Management of Forestry and the Timber Industry" of 
23 August 1999; 
- Forestry Law No. 01/96 of 11 October 1996; - Resolution "On the Adoption of the Forestry Law No. 04/96" of 11 October 1996; - Decree No. 125/PDR "On the Promulgation of the Forestry Law" of 2 November 1996; - The Constitution of the Lao PDR of 15 August 1991; 
- Presidential Ordinance No. 02/OPR "On Le gal Act Drafting" of 20 October 2003; 
- Law No. 06/NA "On the Resolution of Econom ic Disputes", dated 17 December 2010;   
- Enterprise Law No. 11/NA of 9 November 2005; - Business Law No. 03/NA of 18 July 1994; - Decree No. 31/PMO "On the Implementation of the Business Law" of 1 February 1996; 
- Notification No. 750/MOC "On the Implementation of Enterprise Registration Based on the 
Business Law" of 6 August 1996;  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 79 
 
 
  - Decree No. 474/PM "On the Administration of Prices of Goods and Services", dated 18 
November 2010; 
- Decree No. 206/PMO "On Goods Trading Business" of 11 October 2001; - Decree No.114/GoL "On Import and Export of Goods", dated 6 April 2011 - Decree No. 205/PM "On Export and Import" of 11 October 2001; 
- Regulations No. 462/MOC "On the Authoriza tion for the Operation of the Import-Export 
Business" of 8 December 1993; 
- Notification No. 870/MOC "Amendment to Notification No. 175/MOC of 4 April 1994 – 
On Prohibited Goods for Import or Export" of 19 September 1996; 
- Notification No. 1552/MCTPC "On the Import of Motor Cycles Over 250cc" of  8 July 1996; 
- List of Chemical Products Under Restricted Control No. 1364/95/DFM of September 1995; 
- Decree No. 03/PR "On the Preservation of Cultura l, Historical and Natural Heritage" of  
20 June 1997; 
- List of Medicines Prohibited in the Lao PD R based on Decree of the Ministry of Public 
Health No. 740/MPH of 3 April 1994; 
- Decree No. 180/PM "On Import Licensing Procedures" of 7 July 2009; 
- Notification No. 2151/MOIC.DIMEX "On the List of Controlled Goods Subject to 
Non-Automatic Import and Export Licensing Pro cedures in Lao PDR" of 30 October 2009; 
- Notification No. 0826/MOIC.DIMEX "On the Automatic and Non-automatic Licensing of 
Import and Export of Goods", dated 3 May 2011:   
- Annex 1:  Goods subject to non-auto matic import and export licensing; and 
- Annex 2:  Goods subject to automatic import and export licensing;   
- Notification No. 0202/MOC.FTD "On the List of Imports and Exports Subject to Licensing 
from Trade Authorities and Subject to Technical Certification from Related Authorities (for the year 2002-2003)" of 14 February 2003; 
- Law No. 05/NA "Customs Law" of 20 May 2005; 
- Guidance No. 0491/MOF "On the Implementation of the Customs Law No. 05/NA dated 
20 May 2005 and Decree Implementing th e Customs Law" dated 12 March 2009; 
- Instruction No. 1398/PM "On Custom s Valuation" dated 16 June 2010; 
- Decree No. 362/PM "On the Implementation of  the Customs Law" of 19 October 2007; 
- Law No. 4/94/NA "Customs Law" of 18 July 1994; - Decree No. 228/PM "On the Origin of Import and Export Goods" of 22 April 2010; 
- Decree No. 187/PM "On the Abolishing of Export Tariffs for Agricultural Products" of 
21 October 1994; 
- Minister Instruction No. 230/MOF "On the A bolishing of Export Tariffs for Agricultural 
Products" of  4 March 1995; 
- Decree No. 85/PM "On the Management of the Standards and Quality of Goods and Services" 
of 2 November 1995; 
- Provisions No. 105/FMC for Quality Control of 31 October 1991; - Standards Law No. 13/NA of 26 December 2007; - Decree No. 363/PM "On the Notification and E nquiry of Trade Related Information" dated 
19 August 2010; 
- Decision No. 0471/MOIC "On Notification Unit of Sanitary-Phytosanitary Measures and 
Technical Barriers to Trade", dated 9 March 2011; 
- Regulation No. 519/MoH "On Labeling of Prepackaged Food", dated 18 March 2009;   
- Regulation No. 0719/MAF "On the Management and Use of Plant Sp ecies and Seeds for 
Planting in the Lao PDR" of 3 December 1997; 
- Regulation No. 0639/MAF "On the Quarantine of Plants in the Lao PDR" of 2 July 1993; 
- Decree No. 66/PM "On the Quarantine of Plants in the Lao PDR" of 23 March 1993; 
- Regulation No. 894/MAF "On the Control and Use of Plant Pesticides in the Lao PDR" of 
21 November 1992; 
- List of pets and diseases of plants quarantine; - Law No. 03/NA "On Livestock Production and Veterinary Matters" of 25 July 2008; WT/ACC/SPEC/LAO/4/Rev.1 
Page 80  
 
  - Instruction No. 0005/MAF for the Regulati on on Livestock Management in Lao PDR of 
2 January 1997; 
- Decree No. 85/PMO "On Livestock Management in Lao PDR" of 31 May 1993; - Regulation No.  0004/MAF "On Livestock Mana gement in Lao PDR" of 2 January 1997;  
- Technical Norms No. 0313/MAF "On livestock management in the Lao PDR" of 
21 January 2000; 
- Law No. 04/NA "On Food" of 15 May 2004; - National Policy No. 028/PMO "On Food  Safety" of 3 February 2009; 
- Regulation No. 518/MOH "On the Basic Principles in the Application of Sanitary and 
Technical Measures for the Food Safety  Management" of 18 March 2009; 
- Regulation No. 586/MOH "On the Control on Pr oduction, Exported-Imported Safe Food", of 
12 May 2006; 
- Provisions No. 035/FMC "On the Control of Export-Oriented and Imported Foodstuffs" of 
26 October 1991; 
- Elaborated Recommendations No. 035/FMC Rela ting to the Regulations on Quality Control 
of Export-Oriented and Imported Foodstuffs of 9 September 1991; 
- Regulation No. 105/CFD "On Food Quality Control in Domestic Distribution" of 
31 October 1991; 
- Provisions No. 048/FMC "On Quality Control of  Domestically Produced Food Products" of 
26 September 1991; 
- Fisheries Law No. 03/NA, dated 9 July 2009; 
- Resolution No. 09/PMO endorsing "The National Science and Technology Policy of 
Lao PDR up to the year 2010" of 27 November 2003;  
- Decree No. 162/PM "On Border Trade Zone at Boten, Louangnamtha Province" of 
8 October 2002; 
- Decree No. 25/PM "On Dansavanh Village Border Trade Zone" of 25 March 2002; 
- Decree No. 148/PM "On Savan-Seno Special Economic Zone" of 29 September 2003; 
- Decree No. 443/PM "On Special Economic Zone and Specific Economic Zone in the 
Lao PDR", dated 26 October 2010; 
- Implementation of Rules and Regulations No . 01639/MOF "On Government Procurement of 
Goods, Construction, Repairs and Services" of 22 December 1998; 
- Law No. 08/NA "On Intellectual Property" of 24 December 2007; 
- Regulation No. 466/STEA-PMO "On Registra tion of Trademarks" of 7 March 2002;  
- Decree No. 06/PM "On Trademarks" of 18 January 1995; - Decree No. 01/PM "On Patent, Petty Patent and Industrial Designs" of 17 January 2002; 
- Regulation No. 322/STEA-PMO "On the Implem entation of Decree on Patent, Petty Patent 
and Industrial Designs" of 18 February 2003; 
- Presidential Decree No. 06/PO "On the Prom ulgation of the Amended Law on Court Fees", 
dated 16 January 2007;   
- Presidential Decree No. 137/PO "On the Pr omulgation of the Law on the Handling of 
Petitions", dated 9 December 2005;   
- Presidential Decree No. 34/PO "On the Prom ulgation of the Amended Law on Criminal 
Procedure", dated 14 June 2004; 
- Presidential Decree No. 04/PO "On the Promulgation of the Penal Law", dated 
9 January 1990; 
- Decision No. 0349/MOIC.FTPD "On GATS E nquiry Point", dated 22 February 2011; 
- Law No. 04/NA "On Judgement Enforcement (Amended)", dated 8 July 2008;   - Regulation "On Conditions for Establishing Ba nks in the Lao PDR" of 30 November 1995; 
- Decree No. 01/NA "On Commercial Banks" of 11 March 1997; 
- Decree No. 275/PM "On the Implementation of the Law on Commercial Bank", dated 
25 September 2009;   
- Insurance Law No. 11/90/PSA of 29 November 1990; - Telecommunications Act No. 02/NA of 10 April 2001;  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 81 
 
 
  - Decree No. 64/PM "On Private Education" of 14 August 1995; 
- Regulations No. 159/OPM "On the Management of  Hotels and Guesthouses" of 30 July 1997;  
- Regulations No. 1150/PM "On the Establis hment and Management of Tourist Service 
Operators" of 25 October 1993; 
- Regulations No. 1413/49/MCTPC "On the Esta blishment of Businesses of Transportation 
Shipping and Repair Services by the State; State Private Collectives and Private Individuals" 
of 22 June 1996; 
- Law No. 3/97/NA "On Road Transportation" of 12 April 1997; and - Decree No. 35/PDR "On the Enforcement of the Law on Road Transportation" of 
31 May 1997. 
 WT/ACC/SPEC/LAO/4/Rev.1 
Page 82  
 
  Table 2: List of Controlled Businesses (Negative List)
 
 
ISIC Code Controlled businesses 
 Agriculture, forestry and fishing 
0170 Hunting, trapping and related service activities 
0210 Silviculture and other forestry activities 
0220 Logging 
0230 Gathering of non-wood forest products 
0312 Freshwater fishing 
 Mining and quarrying 
0510 Mining of hard coal 
0520 Mining of  lignite 
0610 Extraction of crude petroleum 
0620 Extraction of natural gas 
0710 Mining of iron ores 
0721 Mining of uranium and thorium ores 
0729 Mining of other non-ferrous metal ores 
0810 Quarrying of stone, sand and clay 
0891 Mining of chemical and fertilizer minerals 
0892 Extraction of peat 
0893 Extraction of salt 
0899 Other mining and quarrying n.e.c. 
 Electricity, gas, steam and air conditioning supply 
3510 Electric power generation, transmission and distribution 
3520 Manufacture of gas; distribution of gaseous fuels through mains 
 Water supply; sewerage, waste management and remediation activities 
3600 Water collection, treatment and supply 
3700 Sewerage 
3812 Collection of hazardous waste 
3822 Treatment and disposal of hazardous waste 
 Transportation and storage 
4911 Passenger rail transport, interurban 
4912 Freight rail transport 
4930 Transport via pipeline 
5110 Passenger air transport 
5120 Freight air transport 
5310 Postal activities 
 Information and communication 
5811 Book publishing 
5813 Publishing of newspapers, journals and periodicals 
5911 Motion picture, video and television programme production activities 
5912 Motion picture, video and television programme post-production activities 
5913 Motion picture, video and television programme distribution activities 
5920 Sound recording and music publishing activities 
6010 Radio broadcasting 
6021 Television broadcasting 
6022 Leasing program via cable, satellite and other 
6110 Wired telecommunications activities 
6120 Wireless telecommunications activities 
6130 Satellite telecommunications activities 
6190 Other telecommunications activities 
 Financial and insurance 
6411 Central banking 
6419 Other monetary intermediation 
6420 Activities of holding companies  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 83 
 
 
  ISIC Code Controlled businesses 
6430 Trusts, funds and similar financial entities 
6491 Financial leasing 
6492 Other credit granting 
6499 Other financial service activities, except insurance and pension funding activities, n.e.c. 
6511 Life insurance 
6512 Non-life insurance 
6520 Reinsurance 
6530 Pension funding 
6611 Administration of financial markets 
6612 Security and commodity contracts brokerage 
6619 Other activities auxiliary to financial service activities 
6630 Fund management activities 
 Human health and social work activities 
8610 Hospital activities 
8620 Medical and dental practice activities 
8690 Other human health activities 
 Arts, entertainment and recreation 
9200 Gambling and betting activities 
9321 Activities of amusement parks and theme parks 
 WT/ACC/SPEC/LAO/4/Rev.1 
Page 84  
 
  Table 5:  State-Owned Enterprises
 
A. Enterprises Involved in Importation and Exportation of Goods 
No. Name of SOEs Responsible 
Agency Sectors Registered Activities 
1. Lao Trade Import-
Export Company  Ministry of 
Industry and Commerce Construction and 
technical equipment Import of construction materials, electrical 
equipment and export of wood and handicraft products. 
2. Lao International 
Import-Export Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of construction materials, electrical 
equipment and export of wood and 
handicraft products. 
3. Technical 
Equipment Supply 
Enterprise Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of technical equipment including 
telecommunication equipment. 
4. Lanexang 
Development Co. Ltd Ministry of 
Industry and Commerce Construction and 
technical equipment Import of construction materials, spare 
parts, electrical eq uipment; export of 
wood and handicraft products. 
5. Construction 
Materials, Surveys 
and Analyses Co. Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of construction materials and 
technical equipment. 
6. Lao International 
Trade Service 
Company Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of technical equipment including 
various consumption goods; export of 
handicraft products. 
7. Lao State Fuel 
Company Ministry of 
Industry and 
Commerce Energy Import of gasoline,  diesel, lubricants and 
gas. 
8. Barite Exploration 
Co. Ministry of 
Energy and Mining Mining Operation ceased. 
9. Lao Cotton State 
Enterprise Lao Women's 
Union Textile Export of clothing and other cotton-made 
products. 
10. Pharmaceutical 
Factory No. 2 Ministry of 
Public Health Public health Import of chemical products and export of 
medicines. 
11. Pharmaceutical 
Factory No. 3 Ministry of 
Public Health Public health Import of chemical products and export of 
medicines. 
12. State Printing 
Enterprise  Ministry of 
Information 
and Culture General printing  Printing equipment. 
13. Agricultural 
Machinery 
Company (Tha Ngone) Ministry of 
Agriculture 
and Forestry Agriculture and 
forestry Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
14. Development of 
Agro-Forestry 
Industry Co. (DAFI) Ministry of 
Defence Agriculture and 
forestry Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
15. State Enterprise for 
Agriculture and 
Industry 
Development Ministry of 
Defence Agriculture, 
forestry and 
manufacturing Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
16. Bolisat Phattana 
Khet Phoudoi 
(Mountainous Area 
Development Company) Prime 
Minister's 
Office Agriculture, 
forestry and rural 
development Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 85 
 
 
   
B. Other State-Owned Enterprises 
No. Names Responsible agency Products or services 
17. Lao National Tourism Prime Minister's Office Tourist services 
18. Education Printing Enterprise Ministry of Education Education printing services 
19. Education Equipment Printing  Lao Youth Union  Educational equipment 
20. Electricité du Laos Ministry of Energy and Mining Electricity  
21. National Lottery Co. Ministry of Finance Lottery 
22. Lao Labour Services Co. Ministry of Labour and Social 
Welfare Employment services 
23. Banque Pour Le Commerce 
Exterieur du Laos Bank of Lao PDR Banking service 
24. Lao Development Bank Bank of Lao PDR Banking service 
25. Agricultural Promotion Bank Bank of Lao PDR Banking service 
26. Lao Water Supply Co. Ministry of Public Works and  
Transport Water supply 
27. La Poste du Laos National Authority of Post and 
Telecommunication Postal service 
28. Lao Airlines Ministry of Public Works and  
Transport Airline services 
29. Design Communication Institute National Authority of Post and 
Telecommunication Communication and design 
30. Road and Bridge Construction 
No. 8 Co. Ministry of Public Works and  
Transport Construction 
31. River Transportation Co. Ministry of Public Works and  
Transport Transportation 
32. River Construction and 
Transportation Co. Ministry of Public Works and  
Transport Construction 
33. Communication and Design Co. National Authority of Post and 
Telecommunication Communication and design 
34. River survey and Design Co. Ministry of Public Works and  
Transport Survey and design 
35. Consultant Services Co. Ministry of Finance Consultant services 
36. Lao Air Ministry of Public Works and  
Transport Airline service 
37. Enterprise Telecommunication 
du Lao (ETL) National Authority of Post and 
Telecommunication Telecom services 
 WT/ACC/SPEC/LAO/4/Rev.1 
Page 86  
 
  Table 7:  Fees on or in Connecti on with Importation or Exportation
 
Fee or Charge for Services Rendered Amount of Fee or Charge Ministry or Agency Responsible 
Inspection of imported medicines KN 20,000 per invoice Ministry of Health 
Foodstuffs: 
- Issuing a permit for imports 
- Biennial registration of imported 
products  
KN 20,000 per invoice  
KN 50,000 per product 
registered  
Ministry of Health  
Ministry of Health 
Quality inspection of import of fuel, steel bar and cement KN 600,000 per invoice National Authority for Science 
and Technology 
Fee for Import or Export Licence - Import licence for vehicles and parts  
- Import licence for machines, raw 
materials, semi-final products or other 
parts for installation, manufacturing, 
assembly or processing in factories   
KN 10,000 per set 
KN 40,000 per set Ministry of Industry and 
Commerce and relevant 
competent licensing authorities 
Customs Processing Fee for Import and Export 
1. Certificate of Vehicles duty payment; 
2. Customs declaration form (large); 
3. Customs declaration form (attachment 
form); 
4. Customs seal; 
5. Sticker (D9); 6. Duty stamp(big one); 
7. Duty stamp (medium, small); 
8. Stamp for duty free alcohol, stamp for 
cigarette; 
9. Certificate of duty payment of vehicle 
for those produced and assembled in the system of IKD; 
10. Customs declaration form for vehicle 
for touring (D53); 
11. Customs declaratio n form for guarantee 
(large one D86); 
12. Customs declaratio n form for guarantee 
(attachment form) (D86); 
13. Retail customs declaration form (D44); 14. Service charge of customs data 
management system;  
 
KN 2,000 
KN 500 
KN 250  
KN 3,000 
KN 4,000 KN 600 
KN 500 
KN 1,500  
KN 2,000 
  
KN 2,000 
 
KN 500 
 KN 250 
 
KN 500 KN 100,000 
 Customs Service 
Warehouse fees Fees are collected in 
non-ad valorem , depending 
on type of goods and 
period of storage. Warehouse authorities  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 87 
 
 
  Table 8:  Excise Tax  
No. Goods and services liable to Excise Tax Tax rate 
(in per cent) 
1. Fuel: 
- Gasoline (super) 
- Gasoline (normal) 
- Diesel 
- Plane gasoline 
- Lubricant, hydraulic oils, grease, and brake oil   
25 
24 12 
10 
5 
2. Liquor or alcoholic drinks: 
- Liquor or drinks with alcoholic content from 15 ˚ upwards 
- Liquor, wine and other drinks with alcoholic content under 15 ˚ 
- Beer  
70 
60 
50 
3. -  Mineral water, ready-made drinks, and similar drinks 
- Aerated drinks 
- Soda and energy drinks 10 
20 
30 
4. Ready-made tobacco, cigarettes in packets, and cigars 55 
5. Perfumes and cosmetics 30 
6. Playing cards and similar items , traditional rockets, fireworks 70 
7. Vehicles: 
- Vans with 15 seats and less, 
- Buses with more than 15 seats 
- Lorries 
- Motorcycles 
- Jeeps with soft cover 
- Jeeps with hard cover (with maximum of 2,000 CC) 
- Jeeps with hard cover (2,001 CC to 4,000 CC) 
- Jeeps with hard cover (with engine volume of minimum 4,001 CC)  
- Cars with a maximum of 1,000 CC 
- Cars with an engine volume between 1,001 and 1,500 CC 
- Cars with engine volume between 1,501 and 3,000 CC 
- Cars with minimum engine volume of 3,001 CC  
- Tall/low pick-up trucks with two doors and a cabin 
- Tall/low pick-up trucks with four doors and a cabin  
25 
20 
10 20 
30 
65 70 
75 
60 65 
75 
90 20 
25 
8. Speed boats, motor boats for sport activities, including their motors and 
accessories  10 
9. Electrical appliances such as: air-c onditioners, satellite TV signal receivers, 
audio-video players, cameras, audio-vi deo recorders, musical instruments, 
including components and accessories 15 
10. Freezers, water heaters, wash ing machines, vacuum cleaners 10 
11. Importation, sales and services of billiard/snooker tables, football game tables, 
and other game-playing machines 20 
12. Entertainment services: night clubs, discotheques, karaoke 25 
13. Mobile phone, cable TV, internet services 10 
14. Lottery services 10 
15. Casino activities 15 
  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 88 Table 9: Import Prohibitions  
No. HS Code Description Rationale Legislation Responsible Authorities 
1. 3601-3603 
3604.10.10 8710 
9301 
9302 9304 
9305 
9306 9307 Guns, ammunition and all types of 
weapons (with th e exception of 
explosive substances for industrial use) 
and warfare vehicles. To protect public order 
and national security. - Article 5 of the Criminal Law. 
- Prime Minister's Decision 
No. 39/PM to Regulate the 
Management and the Use of 
Explosive Substances in Lao PDR, dated 12 July 2001. Ministry of National Defence (General 
Department of Army) 
2.  1207.91.00 
1211.40.00 
1211.90.11 1211.90.12 
1211.90.93 
1302.11.00 2939.11.00 
2939.19.00 
2939.91.10 Poppy seeds, poppy, cannabis, opium, 
cocaine, and their derivatives. To protect public order 
and national security. - Article 146 of the Criminal Law. 
- Law "On Narcotic Drugs". 
- Decree No. 076/PM "On the 
Implementation of Law on 
Narcotic Drugs", dated 
20 February 2009. - Ministry of Public Security (Anti-
Narcotic Drugs Police) 
- Prime Minister's Office (Agency of 
Narcotic Drugs Inspection and 
Control) 
3.  Detrimental fishing tools. To protect environment 
and water resources. Law "On Fisheries". Ministry of Agriculture and Forestry 
(Department of Fisheries) 
4.  Used diesel engines. To protect human health 
and the environment.  Ministry of Industry and Commerce 
(Department of Imports and Exports) 
5.  Refrigerators, water-cooling fridges or 
freezers containing Chlorofluorocarbons 
(CFC) substances. To protect human health 
and environment.  Ministry of Industry and Commerce 
(Department of Imports and Exports) 
6.  Used products in the following 
categories: - Garments, shoes, clothes; 
- Electronic goods; 
- Electrical appliances; - Interior decoration items; ceramics 
and items which are cloaked by 
metal or made of glass, plastic, rubber, liquid and other substances. To protect human health 
and environment.  Ministry of Industry and Commerce 
(Department of Imports and Exports) 
7.  Used medical products and equipment. To protect human health 
and environment. Policy "On Medical Equipment 
Management", 2003. Ministry of Public Health (Department of 
Food and Drug, and the Department of 
Clinical and Treatment) 
8.  Highly toxic chemicals.  To protect human health 
and environment.  Ministry of Industry and Commerce 
(Department of Industry)  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 89Table 10:  Goods Subject to Non-Automatic Import Licensing  
No. HS Code Goods Purpose Regulations Supervising authority 
1. 8702 
8703 
8704 
8705 Used vehicles. For safety of consumers and 
protection of environment. - Decree on Import and Export of Goods 
No. 114/GoL dated 6 April 2011. 
- Decree on Goods Import Licensing 
Procedures No. 180/PM dated 
7 July 2009. 
- Decision the Im port Mechanism of 
Cars, Parts for Assembling Factories  
No. 14/PM, dated 28 February 2003. 
- Provisions on Technical Standards of 
Vehicles Permissible for Import for 
Registration and for Assembling for 
use in Lao PDR No. 4312/MCTPC, 
dated 11 November 2002.  
- Prime Minister's Notification 
No. 1691/PMO, dated 7 October 2004. Ministry of Industry and 
Commerce 
(Department of Import and Export) 
 
Ministry of Public Works and 
Transport 
(Department of  Transport) 
 
Ministry of Finance  
(Customs Department) 
2. NA Chemicals of mid-level 
danger used in industries. For protection of health, 
safety of human and 
environment. - Decree on Import and Export of Goods 
No. 114/GoL dated 6 April 2011. 
- Decree on Goods Import Licensing 
Procedures No. 180/PM dated 
7 July 2009. 
- Prime Minister's Notification 
No. 1691/PMO, dated 7 October 2004. 
- Additional regulation is being drafted 
and expected to be issued by 2011 Ministry of Industry and 
Commerce 
(Industry Department) 
3. 3915 Waste parts, cut parts and 
broken parts of plastic 
substances . For environment protection. - Decree on Import and Export of Goods 
No. 114/GoL dated 6 April 2011. 
- Decree on Goods Import Licensing 
Procedures No. 180/PM dated 
7 July 2009 . 
- Prime Minister's Notification 
No. 1691/PMO, dated 7 October 2004. 
- Additional regulation is being drafted. Ministry of Industry and 
Commerce 
(Industry Department) 
4. 8467.81.00 
8467.89.00 
8467.91.10 Timber exploitation 
machines, logging 
machines, chain saw 
including parts and 
equipment thereof.. For control of illegal logging 
and forest destruction and for 
protection of natural 
resources.  - Forestry Law Article 101 (Prohibition 
for businessmen). Ministry of Agriculture and 
Forestry (Forestry Department)  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 90 No. HS Code Goods Purpose Regulations Supervising authority 
5. 4403.20.10 
4407.29 
0601.20.90 Logs, trunks, barks and 
processed timbers. For control of illegal logging 
and forest destruction and for 
protection of natural 
resources. - Decree on Import and Export of Goods 
No. 114/GoL dated 6 April 2011. 
- Decree on Goods Import Licensing 
Procedures No. 180/PM dated 
7 July 2009 .  
- Decision on the Forms and Sizes of 
Timber Products No. 1415/MoIC dated 
28 August 2008. 
- Notification of the Minister of the 
Ministry of Industry and Commerce  
No. 1601/MoIC.DIMEX, dated 
26 September 2008. 
- Convention on International Trade in 
Endangered Species of Wild Fauna and 
Flora to which Lao PDR is a party. 
- Prime Minister's Order on the 
Enhancement of the Strictness in the 
Administration, Protection of Forest 
and Coordination in the Administration 
of Forest and Timber Businesses 
No. 17/PM, dated 22 September 2008. Ministry of Agriculture and 
Forestry (Forestry Department) 
 
Ministry of Industry and 
Commerce 
(Department of Import and Export) 
6. 1005.90 
1006 Rice species, unmilled 
rice, low standard rice, 
premium rice, semi-milled 
or fully milled rice 
whether filtering or not. For protection of stability of 
socio-economy ad food 
supply. - Decree on Import and Export of Goods 
No. 114/GoL dated 6 April 2011. 
- Decree on Goods Import Licensing 
Procedures No. 180/PM dated 
7 July 2009.  
- Notification on Procedure for Import-
Export and Circulation of Goods in the 
Country No. 1691/PMO, dated 
7 October 2004. 
- IPPC (International Plant Protection 
Convention). 
- Regulation- governing plant species 
and seeds for plantation in Lao PDR, 
No 719/MoAF, dated 
13 December 1997. Ministry of Agriculture and 
Forestry 
(Plantation Department) 
 
Provincial, Capital Department of 
Industry and Commerce  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 91No. HS Code Goods Purpose Regulations Supervising authority 
7. 3808 - Pesticides 
- Algicides 
 Algicides agents  Antimicrobials and 
Biocides 
- Attractants - Biopesticides 
- Disinfectants and 
Sanitizers  
- Funglcldes 
- Fumigants 
- Herbicides - Insecticides 
- Miticides or 
Acaricides 
- Microbial pesticides 
- Molluscicides 
- Nematicides - Ovicides 
- Pheromones 
- Repellents 
- Rodenticides 
- Defoliants - Desiccants 
- Plant growth 
regulators/ hormone For protection of health of 
human, animal, plant and 
protection of environment in compliance with international 
obligations and international 
conventions to which Lao PDR is a party. - Ministerial Decision on Control of 
Pesticides in Lao PDR, No. 2860/MAF, 
dated 11 June 2010. Ministry of Agriculture and 
Forestry 
(Plantation Department) 
8. 9303.20 
9303.30 Guns and bullets for 
training and sports. For safety of public and 
national security.  Ministry of National Defence 
(Advisory Major Department) 
9. 36.02 
36.03 Explosives used in 
industries: 
- explosives - explosive equipment 
- explosive objects 
- fireworks 
 For safety of public and 
national security and 
environment protection. - Decision on the Control and Use of 
Explosives in Lao PDR No. 39/PM, 
dated 12 July 2001. 
- Decision on Licence for Import of 
Explosives into Lao PDR No. 88/MOD. 
dated 21 July 2005. 
- Ministerial Decision on the Control of 
Industrial Explosives No. 2450/MOD. 
dated 5 August 2010. Ministry of National Defence 
(National Defence Industry 
Department)  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 92 No. HS Code Goods Purpose Regulations Supervising authority 
10. 7108.12.10 Gold bars (only for gold 
bars as internationally 
recognized as medium of payment). For exchange stability. - Presidential Decree Law on 
Management of Foreign Exchange and 
Precious Metals No. 01/P, dated 17 March 2008. 
- Regulation on the Establishment and 
Supervision of Businesses Importing or Exporting  Precious Metals 
No. 01/BOL, dated 15 May 2007. 
- Instruction No. 01/BOL dated 
2 April 2010 on Implementation of 
Decree Law on Management of Foreign 
Exchange and Precious Metals No. 01/P, dated 17 March 2008. Bank of Lao PDR 
(Monetary Policy Department) 
11. 8525 
8526 Telecommunication 
equipment, radio 
frequency detectors for 3 KHz to 300 GHz with 
broadcasting capacity of 
50mW or more, radars, 
radio frequency remote 
control and remote control radio . For national security. Law on Telecommunication. National Telecommunication and 
Post Authority 
(Telecommunication and Internet Department) 
12. 84.15.10.0084.15.20.00 
84.18.10 
84.18.10.10 84.18.10.90 
84.18.21.00 
84.18.29.00 84.18.30.00 
84.18.40.0084.18.50 
84.18.50.10 84.18.50.90 
84.18.61.00 
84.18.69 84.18.69.10 
84.18.69.2084.18.69.30 
84.18.69.50 84.18.69.90 Refrigerators, ice makers, 
freezers, air conditioners, 
car air conditioners using CFC substance. For environment protection 
from chemicals affecting 
climate change in accordance with Montreal Protocol. At present, decree and provisions on the 
control of import, export and use of ozone 
destroying chemicals of 2003 and 2004 shall apply. 
 
A new decision is being prepared and to be signed by the Minister at the Prime Minister 
Office, Head of Water Resource and 
Environment Authority. Water Resource and Environment 
Authority  
(National Secretariat of GMS)  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 93Table 11:  Goods Subject to Automatic Import Licensing  
No. HS Code Goods Purpose Regulations Supervising authority 
1. 87.02 
87.03 
87.04 
87.05 Cars and car assembling parts of all 
categories of new car 100% (except for bicycle and walk-after-tractor). For faster customs clearance 
process and for data collection. - Decree on Import and Export 
of Goods No. 114/GoL dated 6 April 2011. 
- Provisions on Technical 
Standards of Vehicles Permissible for Import for 
Registration and for 
Assembling for use in Lao PDR No. 4312/MCTPC, 
dated 11 November 2002. 
- Decree on Goods Import 
Licensing Procedures 
No. 180/PM dated 
7 July 2009. Ministry of Industry and Commerce 
(Department of Import and Export)  
Ministry of Public Works and 
Transport (Department of  Transport) 
 
Ministry of Finance  (Customs Department) 
2. 2710 
2711 Petrol and gas. For data collection, faster 
customs clearance and 
prevention against 
smuggling.  - Decree on Import and Export 
of Goods No. 114/GoL dated 
6 April 2011. 
- Decree on Goods Import 
Licensing Procedures 
No. 180/PM dated 7 July 2009. 
- Decree on Administration of 
Prices of Goods No. 207/PM, dated 11 October 2001.  
- Decision 
No. 1785/MOIC.ITD. on Administration of Fuel Import 
and Wholesale Businesses 
dated 7 September 2009. Ministry of Industry and Commerce 
(Department of Import and Export)  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 94 No. HS Code Goods Purpose Regulations Supervising authority 
3.  7102 Uncut diamonds . For compliance with 
regulations of the authority 
supervising trade of uncut diamonds. - Decree on Import and Export 
of Goods No. 114/GoL dated 
6 April 2011. 
- Decree on Goods Import 
Licensing Procedures 
No. 180/PM dated 7 July 2009. 
- Notification of Prime Minister's 
Office No. 1691/PMO, dated 7 October 2004. 
- Notification 
No. 0558/MOIC.FA, dated 3 June 2003. Ministry of Industry and Commerce 
(Department of Import and Export) 
4. 8461 
8465 Wood processing machines of all 
kinds.  For administration of import 
to be in line with production 
target. - Forestry Law No. 06/NA, dated 
24 December 2007. 
- Processing Industry Law  
No. 01/99/NA, dated 
3 April 1999. 
- Decree on Import and Export 
of Goods No. 114/GoL dated 
6 April 2011. 
- Decree on Goods Import 
Licensing Procedures 
No. 180/PM dated 7 July 2009. 
- Notification 
No. 1440/MOIC.DIMEX, dated  4 September 2008. Ministry of Industry and Commerce 
(Industry Department) 
5. 8408.90 Gasoline or diesel-consuming used 
machines. For safety of consumers and 
protection of environment. - Decree on Import and Export 
of Goods No. 114/GoL dated 
6 April 2011. 
- Decree on Goods Import 
Licensing Procedures 
No. 180/PM dated 7 July 2009. Provincial, Capital Department of 
Industry and Commerce  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 95No. HS Code Goods Purpose Regulations Supervising authority 
6. 7213  
7214 
7215 
7216 Steel bars and transformed steels.  For data collection, faster 
customs clearance and 
prevention against smuggling.  - Decree on Import and Export 
of Goods No. 114/GoL dated 
6 April 2011. 
- Decree on Goods Import 
Licensing Procedures 
No. 180/PM dated 7 July 2009. 
- Notification on Procedure for 
Import-Export and Circulation of Goods in the Country 
No. 1691/PMO, dated 
7 October 2004. Provincial, Capital Department of 
Industry and Commerce 
7. 2523 
3816 Cement, mortar, concrete. For data collection, faster 
customs clearance and 
prevention against 
smuggling. - Decree on Import and Export 
of Goods No. 114/GoL dated 
6 April 2011. 
- Decree on Goods Import 
Licensing Procedures 
No. 180/PM dated 
7 July 2009. 
- Notification on Procedure for 
Import-Export and Circulation of Goods in the Country 
No.1691/PMO, dated 
7 October 2004. Provincial, Capital Department of 
Industry and Commerce 
8. 2940 
2941 
2942 Bio-chemical products, organic 
products (chemicals-free products). For import data collection. - Agriculture Law No.01/98/NA, 
dated 10 October 1998. Ministry of Agriculture and 
Forestry  
(Department of Agriculture) 
9. 3002.30.00 
3006.30.90 Veterinary medicines including animal 
cure medicines, vaccines against animal decease  and chemicals for medicine 
processing. For protection of human, 
animal or plant health. - Decree on the Control of 
Animals, Animal Products and Animal Related Goods 
imported or transported 
through Lao PDR, No. 207/PM, dated 
27 July 2007. 
- Regulation No.0004/MoAF, 
dated 2 January 1997. Ministry of Agriculture and 
Forestry (Department of Livestock and Fishery) 
10. 84.43 Printers and colour photocopy 
machines. For import data collection. Law on Printings No. 05/NA, dated 
9 December 2008. Ministry of Information and 
Culture  
(Publication Department)  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 96 No. HS Code Goods Purpose Regulations Supervising authority 
11. NA Printing products  (books, electronic 
printing or other printings for 
distribution). For public moral protection 
and data collection. Law on Printings No. 05/NA, dated 
9 December 2008. Ministry of Information and 
Culture  
(Publication Department) 
12. NA Used medical products and equipment. For protection of human 
health and environment  Policy on the administration of 
medical equipment No. 310/MoPH, 
dated 3 March 2003. Ministry of Public Health 
(Drug and Food Department/ 
Healthcare Department) 
13. 2939 
3004.40.10 Human cure medicine which are 
addicting drugs, nerve affecting substances and basic chemical 
substances. For compliance with UN 
Treaty on Anti-smuggling of Drugs of 1998; 
For protection of human 
health, public order and national security. - Law on Medicines and 
Medical Products No. 01/NA, dated 8 April 2000. 
- Law or Narcotic Drugs. 
- Provision No. 1441/MOH, 
dated 13 August 2003. 
- Decision of the Ministry of 
Public Health on the List of Narcotic Drugs, Nerve 
Affecting Substances and 
Basic Chemical Substances No. 08/MOH, dated 
4 January 2005. Ministry of Public Health 
(Drug and Food Department) 
14. NA Chemicals for pr ocessing human care 
medicines and chemicals used in 
medical science (Laboratory of public 
health sector). There is no registration for 
raw materials for processing 
medicines, where the import 
of such materials is based on the plan of the relevant 
factory and on the relevant 
sample production licence which has been considered 
through Form 1 only. - Law on Medicines and 
Medical Products No. 01/NA, 
dated 8 April 2000. 
- Policy on the administration of 
medical equipment 
No. 310/MoPH, dated 
3 March 2003. 
- Regulation No. 1441/MOH, 
dated 13 August 2003. 
- Regulation on the 
Establishment of Medical 
Products Import-Export 
Companies No. 1442/MoPH, dated 13 August 2003. Ministry of Public Health 
(Food and Drug Department)  
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 Page 97No. HS Code Goods Purpose Regulations Supervising authority 
15. 9018 Medical equi pment (non-r adioactive 
substances or non-hum an health hazard 
substances). For protection of human 
health and prevention against 
unorganized and uncontrolled circulation. - Law on Medicines and 
Medical Products No. 01/NA, 
dated 8 April 2000. 
- Law on Healthcare, 
No. 53/NA, dated 
9 November 2005. 
- Policy on the administration of 
medical equipment 
No. 310/MoPH, dated 3 March 2003. Ministry of Public Health 
(Food and Drug Department) 
16. NA Hydrofloucarbons (HFCs) 
1,1,1,2-Tetrafluoroethane (R -134a) 
1,1-Difluoroethane (R-152a) Pentafluoroethane (R-125) 
1.1.1-trifluoroethane (R-143a) 
Difluoromethane (R-32) Trifluoromethane (R-23) 
11133 Pentafluorpropane (R-245fa) 
Hydrofloucarbons blends (HFCs) 
R143a/125/134a (R-404A) 
R143a/125 (R-507A) R32/125/134a (R-407A) 
R32/125/134a (R-407B) 
R32/125/134a (R-407C) R32/125 (R-410A) 
R23/116 (R-508A) 
R23/116 (R-508B) Halogen-free Refrigerants 
Ammonia (R-717) 
Carbon dioxide (CO2) (R-744) Butane (R-600) 
Iso-Butane (R-600a) 
Propane (R-290) For monitoring and data 
collection of chemicals 
affecting climate change in accordance with Montreal 
Protocol. At present, decree and provisions 
on the control of import, export and 
use of ozone destroying chemicals of 2003 and 2004 shall apply. 
 
A new decision is being prepared and to be signed by the Minister at 
the Prime Minister Office, Head of 
Water Resource and Environment 
Authority. Water Resource and Environment 
Authority  
(National Secretariat of GMS)  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 98 Table 13: Export Prohibitions  
No. HS Code Description Rationale Legislation Responsible Authorities 
1. 1207.91.00 
1211.40.00 1211.90.11 
1211.90.12 
1211.90.93 1302.11.00 
2939.11.00 
2939.19.00 2939.91.10 Poppy seeds, poppy, cannabis, opium, 
cocaine, and their substances. To protect public order and 
national security. - Article 146 of the Criminal 
Law. 
- Law "On Narcotic Drugs". 
- Decree No. 076/PM "On the 
Implementation of Law on Narcotic Drugs", dated 
20 February 2009. - Ministry of Public Security 
(Anti-Narcotic Drugs Police). 
- Prime Minister's Office 
(Agency of Narcotic Drugs 
Inspection and Control). 
2. 3601-3603 
3604.10.10 
8710 9301 
9302 
9304 9305 
9306 
9307 Guns, ammunition and all types of 
weapons (with th e exception of 
explosive substances for industrial purposes) and warfare vehicles. To protect public order and 
national security. - Article 5 of the Criminal Law. 
- Prime Minister's Decision 
No. 39/PM "To Regulate the Management and the Use of 
Explosive Substances in 
Lao PDR", dated 12 July 2001. Ministry of National Defence 
(General Department of Army). 
3.  Logs and processed wood from the 
natural forest. To prevent illegal logging 
along the borders. - CITES (Lao PDR is a 
contracting party). 
- Prime Minister's Instruction 
No. 17/PM "To Strengthen the 
Protection and Conservation of 
Forests and Coordination in Managing Forest and Wood 
Businesses", dated 
22 September 2008. - Ministry of Agriculture and 
Forestry (Department of 
Forestry). 
- Ministry of Industry and 
Commerce (Department of 
Imports and Exports). 
4.  Antique items, including Buddha 
images; Hindu God images and other 
religious respectful items; historical, 
archaeological and cultural invaluable 
items 50 years old or more. To preserve the cultural 
heritages of the nation. - Article 15 of the Customs Law. 
- Law "On National Heritage". 
- Article 2 of the Presidential 
Decree "On Conservation of the Nation's Cultural, 
Historical and Natural 
Heritages". Ministry of Information and Culture 
(Department of Heritage).  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 99Table 14:  Goods Subject to Non-Automatic Export Licensing  
No. HS code Goods Purpose Regulations Supervising authority 
1. 4403.20.10 
4407.29 4409.29.00 
0601.20.90 Logs, trunk, bark, transformed timber 
and semi-finished timber from plantations. For prevention against illegal 
logging, destruction of forest and for protection of 
environment. - Decree on Import and Export 
of Goods No. 114/GoL dated 6 April 2011. 
- Decree on Goods Import 
Licensing Procedures No. 180/PM dated 7 July 2009.
- Decision on the Forms and 
Sizes of Timber Products No. 1415/MoIC dated 
28 August 2008. 
- Notification of the Minister of 
the Ministry of Industry and 
Commerce 
No. 1601/MoIC.DIMEX, dated 26 September 2008. 
- Convention on International 
Trade in Endangered Species of Wild Fauna and Flora to 
which Lao PDR is a party. 
- Prime Minister's Order on the 
Enhancement of the Strictness 
in the Administration, Protection of Forest and 
Coordination in the 
Administration of Forest and Timber Businesses No. 17/PM, 
dated 22 September 2008. Ministry of Agriculture and Forestry 
(Forestry Department)  
Ministry of Industry and Commerce 
(Department of Import and Export)  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 100 No. HS code Goods Purpose Regulations Supervising authority 
2. 1005.90 
1006 Rice species, unmilled rice, low standard 
rice, premium rice, semi-milled or fully 
milled rice whether filtering or not. For protection of stability of 
socio-economy ad food 
supply. - Decree on Import and Export 
of Goods No. 114/GoL dated 
6 April 2011. 
- Decree on Goods Import 
Licensing Procedures 
No. 180/PM dated 7 July 2009.
- Notification on Procedure for 
Import-Export and Circulation 
of Goods in the Country No. 1691/PMO, dated 
7 October 2004. 
- IPPC (International Plant 
Protection Convention). 
- Regulation- governing plant 
species and seeds for plantation in Lao PDR, No. 719/MoAF, 
dated 13 December 1997. Ministry of Agriculture and Forestry 
(Plantation Department) 
 Provincial, Capital Department of 
Industry and Commerce 
3. 2601-2617 Minerals and mineral products. For protection of natural 
resources. Mineral Law No. 04/NA, dated 
8 December 2008. Ministry of Energy and Mine 
(Mining Department) 
4. NA Medical natural resources, including 
forestry products. For protection of endangered 
natural resources. - Decree on Medical Natural 
Resources No. 155/PM, dated 
30 September 2003. 
- Instruction No. 252/MOH, 
dated 6 June 2007 on the 
Implementation of Decree on Medical Natural Resources. Ministry of Public Health 
(Food and Drug Department)  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 101No. HS code Goods Purpose Regulations Supervising authority 
5. 7108.12.10 Gold bars (only for gold bars as 
internationally recognized as medium of 
payment). For exchange stability. - Presidential Decree Law on 
Management of Foreign 
Exchange and Precious Metals No. 01/P, dated 
17 March 2008. 
- Regulation on the 
Establishment and Supervision 
of Businesses Importing or 
Exporting  Precious Metals No. 01/BOL, dated 
15 May 2007. 
- Instruction No. 01/BOL, dated 
2 April 2010 on 
Implementation of Decree Law 
on Management of Foreign Exchange and Precious Metals 
No. 01/P, dated 
17 March 2008. Bank of Lao PDR 
(Monetary Policy Department)  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 102 Table 15:  Goods Subject to Automatic Export Licensing  
No. HS Code Goods Purpose Regulations Supervising authority 
1. 4403.20.10 
4407.29 4409.29.00 
0601.20.90 Logs, trunk, bark, processed timber and 
semi-finished timber from plantations. For monitoring the compliance 
of the introduction of timber administration under CoC 
system. - Decree on Import and Export of 
Goods No. 114/GoL dated 6 April 2011. 
- Decree on Goods Import 
Licensing Procedures No. 180/PM dated 7 July 2009. 
- Convention on International 
Trade in Endangered Species of Wild Fauna and Flora to which 
Lao PDR is a party. 
- Prime Minister's Order on the 
Enhancement of the Strictness 
in the Administration, 
Protection of Forest and Coordination in the 
Administration of Forest and 
Timber Businesses No. 17/PM, dated 22 September 2008. 
- Notification of the Minister of 
the Ministry of Industry and 
Commerce 
No. 1601/MoIC.DIMEX, dated 26 September 2008. 
- Decision on the Forms and 
Sizes of Timber Products No. 1415/MoIC dated 
28 August 2008. Ministry of Agriculture and Forestry 
(Forestry Department)  
Ministry of Industry and Commerce 
(Department of Import and Export)  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 103No. HS Code Goods Purpose Regulations Supervising authority 
2. 4409.29.00 
4410.19.00 
4412 
4414.00.00 4415-4416 
4417-4418 
4419-4420 
4421 Finished timber products/furniture for 
export. For data collection. - Decree on Import and Export of 
Goods No. 114/GoL, dated 
6 April 2011. 
- Decree on Goods Import 
Licensing Procedures 
No. 180/PM, dated 7 July 2009. 
- Notification of the Minister of 
the Ministry of Industry and 
Commerce No. 1601/MoIC.DIMEX, dated 
26 September 2008 
- Decision on the Forms and 
Sizes of Timber Products 
No. 1415/MoIC, dated 
28 August 2008. Provincial, Capital Department of 
Industry and Commerce  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 104 Table 18:  Action Plan for the Implementation of the TRIPS Agreement  
Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
General Provisions: 
Participation in Intellectual Property 
Conventions. Participation in: 
 
- World Intellectual Property Organization 
- Paris Convention - Patent Cooperation Treaty 
- Berne Convention 
  
- Rome Convention 
- Washington Treaty on Intellectual Property in Respect of 
Integrated Circuits  
 
Since 1995 
Since 1998 Since 2006 
Expected to join by 
September 2011  
Deferred 
Deferred  
 
 
  
TA provided by USAID for raising 
awareness on the Berne Convention.   
(Deferred due to technical capacity 
limitations.  Priority to be given to drafting Decree and Regulations to 
implement the Intellectual Property 
Law). 
Part II, Section 1: Copyrights and related rights Intellectual Property Law (2007) 
 
 
Decree Implementing the Inte llectual Property Law (2007) 
 
 Decree Implementing the Inte llectual Property Law (2013) 
 
 Regulation on notification of Copyright and Related Rights 
 
Regulation on Copyright and Related Rights  
 
Training of personnel involved in copyrights protection such as customs officials, policemen, judges, prosecutors and 
lawyers To be amended by 
June 2013 
 
To be adopted by 2011 
 
 To be adopted by 2014 
 
 Adopted in 2009 
 
To be adopted by 2012  
 
On-going activities Based on WIPO model law.  TA sought 
from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID 
Projects. 
 TA sought from ECAP III and USAID 
Projects. 
 In force. 
 
TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID Projects.  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 105Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Part II, Section 2: 
Trademarks Decree on Trademarks 
 Regulation on Trademarks Registration 
 
Intellectual Property Law (2007)  
 
Decree Implementing the Inte llectual Property Law (2007) 
 
 
Decree Implementing the Inte llectual Property Law (2013) 
 
 
Training of personnel involved in trademarks protection such as customs officials, police, judges, prosecutors and lawyers 
 
Trademarks Registry System January 1995 
 March 2002 
 
To be amended by June 2013 
 
To be adopted by 2011  
 
To be adopted by 2014  
 
On-going activities  
 
Set-up in 1991 In force. 
 In force. 
 
Based on WIPO model law.  TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID Projects. 
Part II, Section 3: 
Geographical indications Intellectual Property Law (2007) 
 
 Decree Implementing the Inte llectual Property Law (2007) 
 
 Decree Implementing the Inte llectual Property Law (2013) 
 
 Training of personnel involved in protection of geographical 
indications such as customs officials, police, judges, 
prosecutors and lawyers  
Setting up of the Geographical indications Registry To be amended by 
June 2013 
 To be adopted by 2011 
 
 To be adopted by 2014 
 
 On-going activities 
 
  
To be set up by 2012 Based on WIPO model law.  TA sought 
from ECAP III and USAID Projects. 
 TA sought from ECAP III and USAID 
Projects. 
 TA sought from ECAP III and USAID 
Projects. 
 TA provided by WIPO and EU 
(ECAP III Project). 
  
TA sought from ECAP III.  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 106 Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Part II, Section 4: 
Industrial designs Decree on Patents, Petty Patents (Utility Models) and 
Industrial Designs  
Regulation on the Implementation of Decree on Patents, Petty 
Patents and Industrial Designs  
Intellectual Property Law (2007) 
  
Decree Implementing the Inte llectual Property Law (2007) 
  
Decree Implementing the Inte llectual Property Law (2013) 
  
Training of officials involved in enforcement such as customs 
officials, police, judges,  prosecutors and lawyers 
 
Setting up of the Designs Registry January 2002 
  
February 2003 
  
To be amended by 
June 2013  
To be adopted by 2011 
  
To be adopted by 2014 
  
On-going activities 
  
Set up in 2002 In force. 
  
In force. 
  
Based on WIPO model law.  TA sought 
from ECAP III and USAID Projects.  
TA sought from ECAP III and USAID 
Projects.  
TA sought from ECAP III and USAID 
Projects.  
TA provided by WIPO, USAID and 
ECAP III. 
Part II, Section 5: Patents Decree on Patents, Petty Patents (Utility Models) and 
Industrial Designs 
 
Regulation on the Implementation of Decree on Patents, Petty Patents and Industrial Designs 
 
Intellectual Property Law (2007)  
 
Decree Implementing the Inte llectual Property Law (2007) 
 
 
Decree Implementing the Inte llectual Property Law (2013) 
 
 
Training of officials involved in enforcement such as customs officials, police, judges,  prosecutors and lawyers 
 
Setting up of the Patent Registry January 2002 
 
 
February 2003  
 
To be amended by June 2013 
 
To be adopted by 2011  
 
To be adopted by 2014  
 
On-going activities  
 
Set up in 2002 In force. 
 
 
In force.  
 
Based on WIPO model law.  TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID Projects. 
 
TA provided by WIPO, USAID and ECAP III.  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 107Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Part II, Section 6: 
Layout-designs (Topographies) of integrated circuit Intellectual Property Law (2007) 
  
Decree Implementing the Inte llectual Property Law (2007) 
  
Decree Implementing the Inte llectual Property Law (2013) 
  
Training of officials involved in enforcement such as customs 
officials, police, judges,  prosecutors and lawyers To be amended by 
June 2013  
To be adopted by 2011 
  
To be adopted by 2014 
  
On-going activities Based on WIPO model law.  TA sought 
from ECAP III and USAID Projects.  
TA sought from ECAP III and USAID 
Projects.  
TA sought from ECAP III and USAID 
Projects.  
TA provided by WIPO and EU 
(ECAP III Project). 
Part II, Section 7: Undisclosed information Decree on Trade Competition 
 
Intellectual Property Law (2007) 
  
Decree Implementing the Inte llectual Property Law (2007) 
 
 
Decree Implementing the Inte llectual Property Law (2013)
 
 
 
Training of officials involved in enforcement such as customs officials, police, judges,  prosecutors and lawyers April 2004 
 
To be amended by 
June 2013  
To be adopted by 2011 
 
 
To be adopted by 2014  
 
On-going activities In force. 
 
Based on WIPO model law.  TA sought 
from ECAP III and USAID Projects.  
TA sought from ECAP III and USAID 
Projects. 
 
TA sought from ECAP III and USAID Projects. 
 
TA provided by WIPO and EU (ECAP III Project). 
Part II, Section 8: 
Control of anti-competitive practices 
in contractual licence Decree on Trade Competition 
 
Intellectual Property Law (2007)  
 
Decree Implementing the Inte llectual Property Law (2007) 
 
 
Decree Implementing the Inte llectual Property Law (2013) April 2004 
 
To be amended by June 2013 
 
To be adopted by 2011   
 
To be adopted by 2014 In force. 
 
Based on WIPO model law.  TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID Projects  
 
TA sought from ECAP III and USAID Projects.  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 108 Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Part III, Section 2: 
Civil and administrative procedures and remedies Law on Civil Procedure 
 Decree on Trademarks 
 
Penal Code Law  
Regulation on Trademarks Registration  
 Decree on Patents, Petty Pa tents and Industrial Designs 
 
Regulation on the Implementation of Decree on Patents, Petty Patents and Industrial Designs 
 
Law on the People's Courts  
Judgment Enforcement Law 
 Intellectual Property Law (2007) 
 
 
Decrees Implementing the Inte llectual Property Law (2007) 
  
Decree Implementing the Inte llectual Property Law (2013)
 
 
 
Establishment of copyright and related rights information 
section under Copyright Division  
Establishment of geographical indications information section 
under Industrial Property Division May 2004 
 January 1995 
 
November 2005  
March 2002 
 January 2002 
 
February 2003  
 
October 2003  
May 2004 
 To be amended by 
June 2013 
 
To be adopted by 2011 
  
To be adopted by 2014 
  
Established in 2009 
  
Established in 2011 In force. 
 In force. 
 
In force.  
In force. 
 In force. 
 
In force.  
 
In force.  
In force. 
 Based on WIPO model law.  TA sought 
from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID 
Projects   
TA sought from ECAP III and USAID 
Projects.  
   WT/ACC/SPEC/LAO/4/Rev.1
 Page 109Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Part III, Section 4: 
Special requirements related to border measures Customs Law 
 Decree Implementing Customs Law 
 
Intellectual Property Law (2007)  
 
Decree Implementing the Inte llectual Property Law (2007) 
 
 
Decree Implementing the Inte llectual Property Law (2013)
 
 
 
Instruction on Customs Protection of Intellectual Property  
 
Training of officials involved in enforcement such as customs officials December 2005 
 Adopted in 2007 
 
To be amended by June 2013 
 
To be adopted by 2011  
 
To be adopted by 2014  
 
To be adopted by 2011  
 
On-going activities In force. 
 In force.  
 
Based on WIPO model law.  TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID Projects. 
 
TA sought from USAID   
TA provided by WIPO and ECAP III. 
Part III, Section 5: 
Criminal procedures Criminal Law (Amended) 
 Criminal Procedure Law (Amended) 
 
Intellectual Property Law (2007)  
 
Decrees Implementing the Inte llectual Property Law (2007) 
 
 
Decree Implementing the Inte llectual Property Law (2013)
 November 2005 
 May 2004 
 
To be amended by June 2013 
 
To be adopted by 2011  
 
To be adopted by 2014 In force. 
 In force. 
 
Based on WIPO model law.  TA sought from ECAP III and USAID Projects. 
 
TA sought from ECAP III and USAID   
TA sought from ECAP III and USAID 
Projects.  
  WT/ACC/SPEC/LAO/4/Rev.1 
Page 110 Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Others Increased computerization of NAST 
  
Increased computerization of enforcement agencies 
  
Training for users (development of information brochure and 
training program)  
Practical training in copy right piracy and trademark 
counterfeiting  
Developing rules, regulations, manuals  and operating 
procedures  
Enhancing public awareness on the protection of intellectual 
property rights Being implemented in 
2011  
To be implemented by 
2012  
On-going activities 
  
On-going activities 
  
On-going activities 
  
On-going activities TA received from WIPO. 
  
TA is needed.  
  
 
  
TA provided by WIPO and EU 
(ECAP III Project). 
Note:   The above transition strategy for the implementation of Agreement on Trade-Related Asp ect of Intellectual Property Righ ts (TRIPS) would be achieved latest by 
December 2015 based on technical assistance and national capacity.  The Lao PDR Government avails itself to special and differe ntial treatment for Least-Developed-
Countries under the TRIPS Agreement and various Ministerial Confer ence Declarations such as paragr aph 47 of the Hong Kong Minis terial Declaration and refers in 
IP/C/40. 
  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 111 
 
 
  Table 19:  Fees for Intellectual Property Registration  
Action Fee (US$ per mark or item) 
TRADEMARKS 
Trademark registration or trademark renewal 80 
- Each class (fee per class) 5 
Transmission 20 
Consultation for the registration 5 
Search of Trademark 10 
Modification of items of the application 10 
Publication 20 
Application per form 2 
PATENTS 
Official fees:  
 
1. Official fee for granted patent  
 
30 
Regular services fees:  
 
1. Application form for registration of invention 
2. Consultation on invention  
 
20 
10 
Irregular services fees : 
 
1. Request against registration 
2. Amendment of application for registration 3. Assignment or licensing of patent rights 
4. Duplicate of patent  
 
20 
10 40 
10 (per copy) 
Fee charge of each search report relies on the calculation of relevant 
foreign examination body or international organization.  
In order to maintain the patent, an an nual official fee and service fee shall 
be paid by the owner of invention are as follows:  
- 5th year: Official fee 
   Services fee - 6th year: Official fee 
   Services fee 
- 7th year: Official fee    Services fee 
- 8th year: Official fee 
   Services fee 
- 9th year: Official fee 
   Services fee - 10th year: Official fee 
   Services fee 
- 11th year: Official fee    Services fee 
- 12th year: Official fee 
   Services fee - 13th year: Official fee 
   Services fee 
- 14th year: Official fee    Services fee 
- 15th year: Official fee 
   Service fee - 16th year: Official fee 
   Services fee  
  
 
  
30 
20 40 
20 
50 20 
60 
40 
80 
60 
100 
80 
140 100 
180 
120 230 
150 
280 180 
330 
210 390 
250 WT/ACC/SPEC/LAO/4/Rev.1 
Page 112  
 
  Action Fee (US$ per mark or item) 
- 17th year: Official fee 
   Services fee - 18th year: Official fee 
   Services fee 
- 19th year: Official fee 
   Services fee 
- 20th year: Official fee    Services fee 450 
300 510 
350 
570 
400 
650 450 
PETTY PATENTS 
Official fees : 
 
1.  Official fee for granted petty patent   
 
30 
Regular services fees : 
 
1.  Application form for registration of device 
2.  Consultation on device  
 
10 
10 
Irregular services fees : 
 
1. Request against registration   
2.  Amendment of application for registration   3.  Assignment or licensing of petty patent rights      
4.  Duplicate of petty patent   
 
10 
10 40 
10 (per copy) 
In order to maintain the petty patent, an annual official fee and service 
fee shall be paid by the owner of device are as follows:  
- 2nd year: Official fee 
   Services fee 
- 3rd year: Official fee 
   Services fee - 4th year: Official fee 
   Services fee 
- 5th year: Official fee    Services fee 
- 6th year Official fee 
   Services fee - 7th year: Official fee 
   Services fee  
  
10 
15 
20 
15 30 
20 
40 25 
50 
30 70 
35 
INDUSTRIAL DESIGNS 
Official fees : 
 1. Official fee for certifi cate of industrial design  
 
20 
Regular services fees : 
 
1. Application form for registration of industrial design  2. Consultation on industrial design  
 
10 10 
Irregular services fees : 
 
1. Request against registration 
2. Amendment of application for registration 
3. Assignment or licensing of rights of industrial design 4. Duplicate of industrial design  
 
10 
10 
40 
10 (per copy)  WT/ACC/SPEC/LAO/4/Rev.1 
 Page 113 
 
 
  Action Fee (US$ per mark or item) 
In order to maintain the industrial  design, an annual official fee and 
service fee shall be paid by the owner are as follows:  
 2nd year: Official fee 
   Services fee 
 3rd year: Official fee 
   Services fee - 4th year: Official fee 
   Services fee 
- 5th year: Official fee    Services fee 
- 6th year – 15th year: 
   Official fee    Services fee  
  
10 
5 
15 
8 
20 
11 
25 11 
 
30 20 
 
Remark:  
In addition to the official fee for registration of inventio n, device or industrial design, the Registry Unit is asked 
to gather a contribution fund from the owner of patent, petty patent and industrial design for publication of the result of the patent registration US$40, device registration US$30, and industrial design registration 
US$30 per item. 
 
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